ANNUAL REPORT
2024
Corporate Directory
Disclaimer
This report contains certain forward-looking statements and forecasts, including possible or assumed reserves and resources, production levels
and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such
statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond
the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed or implied by these forward-
looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an
offer to buy or sell securities.
This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements
of United States and other country securities laws. Unless otherwise indicated, all Ore Reserve and Mineral Resource estimates included
or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the
Australasian Institute of Mining and Metallurgy, and Australian Institute of Geosciences.
ACN 000 689 216
ABN 35 000 689 216
Directors
I J Gandel
Non-Executive Chairman
N P Earner
Managing Director
D I Chalmers
Technical Director
A D Lethlean
Non-Executive Director
G M Smith
Non-Executive Director
Joint Company Secretaries
D Wilkins
J Carter
Registered office
and principal place of business
Level 4
66 Kings Park Road
West Perth WA 6005
Telephone: 61 8 9227 5677
Share register
Automic Pty Ltd
Level 5
126 Phillip Street
Sydney NSW 2000
Auditor
PricewaterhouseCoopers
Brookfield Place
125 St Georges Terrace
Perth WA 6000
Securities exchange listings
Ordinary fully paid shares
Australian Securities Exchange (Perth)
ASX code: ALK
OTC International
OTC code: ALKEF
Contact
alkane.com.au
info@alkane.com.au
Contents
About Alkane
4
Annual Highlights
6
Chairman’s Message
8
Business Review
9
Tomingley
10
Boda-Kaiser
14
Exploration
18
Mineral Resources and Ore Reserves 25
Sustainability Report
33
Sustainability at Alkane
34
Governance
36
Our People
40
Communities
48
Environment
60
Financial Report
71
Directors’ Report
72
Auditor’s Independence Declaration
93
Financial Statements
94
Consolidated Financial Statements
96
Notes to the Consolidated Financial Statements 100
Consolidated Entity Disclosure Statement
135
Directors’ Declaration
136
Independent Auditor’s Report
137
Additional Information
143
Shareholder Information
144
Corporate Governance Statement
145
Schedule of Mining Tenements
146
About Alkane
We are a gold exploration, development and production company with
projects and operations located in Central West New South Wales.
Alkane Resources Ltd is the parent
entity of the Alkane group. We own and
operate Tomingley Gold Operations, an
open pit and underground gold mining
development southwest of Dubbo.
Alkane’s Boda-Kaiser Project is founded
on a large gold-copper porphyry system
near Bodangora, east of Dubbo, with
potential for a long-term bulk-tonnage
mining and processing operation. We also
hold several highly prospective gold and
copper tenements in Central West New
South Wales.
Alkane is headquartered in Perth,
Western Australia. Our exploration team
is based in Orange, New South Wales.
The company was incorporated in 1969
and is listed on the Australian Securities
Exchange (ASX:ALK).
Perth
N
Dubbo
Boda
Tomingley
Gold Operations
Orange
Tomingley underground
ANNUAL REPORT ABOUT ALKANE
Alkane Resources Annual Report 2024
4
5
Alkane Resources Annual Report 2024
Tomingley
Our Values
Mission Statement
Integrity
We do what’s right in our
actions and relationships.
Respect
We treat people and the
environment with care.
Transparency
We are proactive in
communicating our intent
and outcomes.
Performance
We plan and execute to
deliver strong business
results.
Alkane strives to discover economic mineral deposits and release
their value through sustainable development or transaction.
Our approach is technically conservative, with any financial risks
carefully considered.
ANNUAL REPORT ABOUT ALKANE
Gold revenue of
$173.0M
(FY23: $190.5M)
Annual Highlights
Profit after tax of
A$17.7M
(FY23: $42.5M)
Cash, Bullion and listed
investments of
$54.5M
at 30 June 2024
(FY23: $107.2M)
57,592oz
gold sold at
$3,004 per oz
(FY23: 70,498oz gold sold at $2,703 per oz)
Corporate
ANNUAL REPORT ANNUAL HIGHLIGHTS
Alkane Resources Annual Report 2024
6
7
Alkane Resources Annual Report 2024
Commenced
Roswell
underground
mining development
Operating cashflow of
$64.8M
at 30 June 2024
(FY23: $80.3M)
Operations
Updated Boda-Kaiser resources
(Indicated + Inferred) at
8.3Moz Au and
1.5Mt Cu
Updated NMPP geological
map with
major Au-Cu
porphyry setting
identified after gravity survey
75,235m drilled
at exploration prospects (323 holes)
(FY23: 85,423m)
Boda-Kaiser Project
Scoping Study
completed
(released post year-end 10 July 2024)
Exploration and Growth
57,217oz
gold poured at an AISC of
A$2,137 per oz
(FY23: 70,253oz gold poured at an AISC of
A$1,602 per oz)
Tomingley
Five Year Plan
released
ANNUAL REPORT ANNUAL HIGHLIGHTS
8
Alkane Resources Annual Report 2024
ANNUAL REPORT CHAIRMAN’S MESSAGE
Chairman’s Message
I’m delighted to present the Alkane
Resources Annual Report to
shareholders for 2024.
It has been another productive and pivotal year for Alkane, with
Tomingley entering a new era of growth and an initial Scoping
Study demonstrating strong potential value at Boda-Kaiser.
We are immensely pleased with the progress on both projects.
We have entered a transformational period at Tomingley that
will see mining of new resources and gold production ramp up
over the next few years. Underground extraction of ore
commenced at Roswell in April. In parallel, we’re partway
through a period of major capital works, which include plant
upgrades to improve throughput and gold recoveries.
I direct your attention to the Tomingley Five Year Plan, released in June, which outlines the projected
production and capital costs until the end of FY29. By FY27, when we plan to commence open cut
mining at San Antonio, we hope to be producing more than 100,000 ounces of gold per annum. With
open cut reserves extending beyond the current five-year plan and the prospect of growing resources
further, the future at Tomingley looks bright.
The future of our Boda-Kaiser Project also looks promising. We updated the Boda and Kaiser Mineral
Resources during the year, introducing an Indicated category for each, and announced the results of a
comprehensive metallurgical testwork program. These informed scoping-level mining, engineering, and
economic studies that were combined to produce the Boda-Kaiser Scoping Study, released in July.
The Scoping Study demonstrates the significant value that could come from development of Boda-
Kaiser, particularly leveraging economies of scale. We are continuing baseline environmental studies
and refining various aspects of the project with the view to progressing further into feasibility. In
addition, we are starting to engage with larger gold companies to evaluate partnering options for what
would be a major project.
On the exploration front, after a sustained period focused at Boda-Kaiser and the San Antonio
and Roswell resources at Tomingley, we now turn our attention to defining new targets. Significant
potential exists for the discovery of further deposits across both the Northern Molong Porphyry and
Tomingley Gold tenement packages. During FY24, we undertook airborne geophysical surveys over
most of our tenements to refine our understanding of the geology and help identify new targets.
Our achievements this year derive from the considerable efforts and support of a great many people.
On behalf of Alkane’s Board and management, I acknowledge and thank the employees, contractors,
strategic partners and consultants of the company for their strong and continued commitment, and I
thank our many shareholders and stakeholders for their ongoing support of Alkane.
Ian Gandel
Chairman
Alkane Resources Ltd
9
Alkane Resources Annual Report 2024
Tomingley underground
BUSINESS
REVIEW
Tomingley
We entered a new era at Tomingley during FY24, with the start of
underground mining at Roswell and progression of major capital works to
extend and futureproof operations.
Mining and production
Tomingley Gold Operations is an open pit and
underground mining development with a 1Mtpa
processing facility in operation since 2014. The operation
is located near the village of Tomingley, approximately
50 kilometres southwest of Dubbo in Central West
New South Wales. Tomingley Gold Operations Pty Ltd
is a wholly owned subsidiary of Alkane.
Mining at Tomingley has been based on the Wyoming
One, Wyoming Three, Caloma One and Caloma Two
gold deposits. Throughout FY24, mining occurred
underground at Wyoming One, Caloma One and
Caloma Two.
In April 2024, underground mining commenced at
the Roswell deposit, approximately 2.7 kilometres
south of Tomingley, following the required
government approvals. Access to the deposit is via
the underground exploration drive completed in May
2023, which has been repurposed as a production drive.
In FY24 Tomingley produced
57,217 ounces of gold at an
AISC of A$2,137 per ounce.
*AISC, or All In Sustaining Cost, comprises all site operating costs, royalties,
mine exploration, sustaining capex and mine development and an allocation of
corporate costs, presented on the basis of ounces sold.
Production for the financial year was 57,217 ounces
of gold at an AISC* of A$2,137. These fell within the
revised production guidance (ASX announcement
11 June 2024). Despite strong production in the final
quarter, we were unable to meet the original guidance
due to two primary factors: unforeseen recovery
issues experienced from a discrete mining area in
Caloma Two during February; and the Roswell ramp-
up was delayed by equipment availability.
FY25 guidance for Tomingley is 70,000 to 80,000
ounces of gold production at an AISC of A$2,400 to
$2,600 per ounce. The higher cost reflects the one-
off cost of decline development at Roswell that is
accounted as sustaining capital and therefore included
in the AISC.
BUSINESS REVIEW TOMINGLEY
Alkane Resources Annual Report 2024
10
Tomingley
Extension of operations
The Tomingley Gold Extension Project permits Alkane
to extend gold mining operations to the San Antonio
and Roswell resources immediately south of the
existing mine. Approval was granted in February 2023
until end-2032.
We have approval to develop an underground mine
at Roswell and one large open cut (comprising three
stages of pit development within its footprint). The
consent also permits realignment of the Newell
Highway and another local road, a higher processing
rate of 1.75Mtpa, paste-filling of underground stopes
at Roswell, and further wall-lifts to the second residue
storage facility.
During FY24, the following activities related to the
extension and futureproofing of operations:
• Obtained new Mining Lease from 19 July
2023 and approvals of required environmental
management plans.
• Undertook underground infill drilling of the
Roswell deposit, leading to an updated Mineral
Resource Estimate (see page 27).
• Completed construction of the second residue
storage facility (RSF2).
• Constructed a new access ramp into the Wyoming
One open cut to provide long-term safe access to
the underground mine.
• Commenced paste plant construction in late 2023.
The paste plant will provide stope fill material
to ensure ground stability and full recovery of
reserves (no underground pillars required).
11
Alkane Resources Annual Report 2024
BUSINESS REVIEW TOMINGLEY
• Commenced a processing plant upgrade to
improve gold recovery, involving construction of a
flotation and regrind circuit.
• Established underground mining and facilities at
Roswell.
• Upgraded the site’s incoming high-voltage power
system.
• Commenced construction of the pipeline and
surface vehicle corridor linking the Caloma and
Roswell deposits.
• Obtained approval for the Newell Highway
realignment design and released tenders for
construction.
Alkane expects to commission the paste plant and
processing plant upgrade by December 2024. During
the 2025 calendar year, we plan to construct the
Newell Highway and Kyalite Road diversions, prepare
open cut infrastructure, and upgrade the processing
plant to a nominal throughput of 1.5Mtpa.
Tomingley Five Year Plan
Alkane recently announced the Tomingley Five Year
Plan, which outlines projected production and capital
costs until the end of FY29 (ASX Announcement
24 June 2024).
The next five years will see the Roswell underground
development continue and the start of open cut
operations at San Antonio once a section of the
Newell Highway has been relocated.
The 1.5Mtpa processing rate is planned to come
online by end-2025.
The table below summarises key elements of the five-
year plan. The projected high cost of the first financial
year (FY25) reflects the inclusion of Roswell decline
development in the AISC. Note that the resources at
Tomingley extend beyond this five-year plan.
Summary of anticipated mine production
FY24
FY25
FY26
FY27-29
Production Range
(ozAu)
55,000 - 58,000
70,000 - 80,000
85,000 - 95,000
100,000 - 110,000
Ore Source:
- Underground
- Open Cut
100%
0%
100%
0%
100%
0%
60%
40%
Head Grade
(g/t Au)
2.0
2.3
2.5
2.4
Expected AISC
(A$/ozAu)
2,150 - 2,350
2,400 - 2,600
1,800 - 2,000
1,900 - 2,100
1,900 - 2,100
Estimated production and AISC
120
110
100
90
80
70
60
50
40
30
20
Gold Produced (koz)
AISC A$/oz
3,000
2,500
2,000
1,500
1,000
500
0
FY25
FY26
FY27
FY28
FY29
BUSINESS REVIEW TOMINGLEY
Alkane Resources Annual Report 2024
12
FY25-29:
455,000-505,000oz Au
$1,900-$2,100 AISC
Mine life to
2030+
$132M
capital for growth over next 18 months
1.5Moz Au
in resource
13
Alkane Resources Annual Report 2024
BUSINESS REVIEW TOMINGLEY
Tomingley
Tomingley snapshot
BUSINESS REVIEW BODA-KAISER
Alkane Resources Annual Report 2024
14
Boda-Kaiser
Updated Mineral Resource Estimates and comprehensive metallurgical
studies informed a series of scoping-level mining, engineering, and
economic studies. These were combined to produce a Boda-Kaiser
Scoping Study in July 2024.
Project overview
The Boda-Kaiser Project is founded on a large gold-
copper porphyry system near the village of Bodangora,
15 kilometres northeast of Wellington in Central West
New South Wales.
Alkane discovered porphyry mineralisation with
significant economic potential at Boda in late 2019.
An extensive drilling campaign has since defined the
Boda and Kaiser resources, which lie in a mineralised
corridor some 3.5 kilometres in length. We believe
the Boda and Kaiser deposits have the potential
to support a long-term bulk-tonnage mining and
processing operation.
The Boda-Kaiser Project is part of Alkane’s Northern
Molong Porphyry Project (NMPP), which comprises
several Exploration Licenses (ELs) in the broader
area. Alkane currently owns two properties within
the NMPP, including the land on which the Boda and
Kaiser deposits are located.
Updated Mineral Resources
Alkane announced updated Mineral Resource
Estimates (MRE) for Boda and Kaiser during the
reporting period (ASX Announcements 14 December
2023 and 29 April 2024 respectively), introducing an
Indicated category for both resources. The updated
Boda MRE now includes the previously unclassified
mineralisation at Boda 2-3.
The Boda and Kaiser resources have an estimated
total combined metal inventory of 8.3 million ounces
of gold and 1.5 million tonnes of copper (~14.7 million
ounces of gold equivalent (AuEq)*). This represents an
increased metal endowment of approximately 15% for
the project.
Boda is a large, low-grade resource with a surface
projection approximately 1,750 metres long and
500 metres wide. It is classified to a depth of
approximately 1,000 metres below surface.
The nearby Kaiser resource has a surface projection
of approximately 1,100 metres long and 700 metres
wide. It is classified to a depth of approximately
630 metres below surface. Both resources are open at
depth and along strike. Refer to page 18 for information
about Alkane’s exploration program and page 31 for
the complete Mineral Resource Estimation tables.
*The gold equivalent calculation formula is AuEq(g/t) = Au(g/t) + Cu%/100 x
31.1035 x copper price($/t) / gold price($/oz). The prices used were 12-month
averages of US$1,950/oz gold and US$8,600/t copper, and A$:US$0.67.
Estimated recoveries are 87% Cu and 81% Au for Boda and 81% Cu and 71% Au
for Kaiser from metallurgical studies of the Boda and Kaiser ore. Alkane considers
the elements included in the metal equivalents calculation have a reasonable
potential to be recovered and sold.
The Boda-Kaiser resources
have a combined metal
inventory of approximately
8.3Moz Au and 1.5Mt Cu.
15
Alkane Resources Annual Report 2024
BUSINESS REVIEW BODA-KAISER
Alkane
Resources Ltd
KAISER
BODA
BODA 2-3
Inferred
Indicated
25x25x10m blocks
July 2024
Boda-Kaiser 3D block model of indicated and inferred resources with pit shells
BUSINESS REVIEW BODA-KAISER
Alkane Resources Annual Report 2024
16
Metallurgical studies
Alkane announced the results of a comprehensive
metallurgical testwork program on the Boda and
Kaiser ores in November 2023 (ASX Announcement
14 November 2023).
With the goal of identifying the optimal processing
method, the program tested 21 representative
samples of the Boda and Kaiser ores and established a
viable process flowsheet. This comprised conventional
crushing, grinding and flotation circuits to produce a
saleable concentrate and leaching of the cleaner tail to
produce gold doré.
The overall recovery of gold and copper to saleable
products exceeded our initial expectations:
• Boda is estimated at 87.4% of copper
and 80.9% of gold.
• Kaiser is estimated at 79.6% of copper
and 70.7% of gold.
Although further testwork will be required, the
campaign supplied a considerable amount of data for
the process design component of the Boda-Kaiser
Scoping Study.
Environmental studies
During FY24, Alkane commenced baseline
environmental studies in the vicinity of the Boda and
Kaiser deposits. We will need to collect a wide range
of baseline data over at least two years to prepare an
Environmental Impact Statement (EIS), required for
project approval in the future.
The studies will encompass meteorological conditions,
flora and fauna, surface and groundwater, soils and
land use capability, visual amenity, transport, noise, air
quality, and Aboriginal and European heritage.
Boda-Kaiser
Copper-gold concentrate from Boda-Kaiser
17
Alkane Resources Annual Report 2024
BUSINESS REVIEW BODA-KAISER
Boda-Kaiser Scoping Study
Post year-end, Alkane released a Scoping Study of
the Boda-Kaiser Project (ASX Announcement
10 July 2024). The goal was to help us understand
the potential project economics and economies of
scale from different-sized operations and identify a
potential pathway to development.
The Scoping Study evaluated three possible
development scenarios (mining and processing 5,
10 and 20 million tonnes of ore per annum) over
a 30-year timeframe. It showed that the largest
development scenario (20Mtpa) is the highest value
due to the potential economies of scale.
20Mtpa
Throughput (2 x 10 Mtpa)
17+ years
Life of Mine
A$1.8B
Capex (pre-production)
35,611tpa
Copper (first 5 years)
159,334oz pa
Gold (first 5 years)
A$630.4/oz
AISC (with copper by-product credit)
A$4.3B
10-Year Free Cashflow (pre-tax)
A$1.8B
Net Present Value (7%)
24%
Internal Rate of Return
Given its positive economics, the 10Mtpa
development could form part of a staged build for a
larger project, or as a standalone project in a rising
gold and copper price environment. It is unlikely that a
5Mtpa development would meet Alkane’s investment
return hurdles at current gold and copper prices.
Alkane intends to explore further reduction of
mining costs and assess potential for bulk-tonnage
underground mining, while continuing process
optimisation, regional exploration and baseline
environmental studies. We will also evaluate potential
funding pathways and partners, the outcome of which
will contribute to the selection of which development
option to progress further into feasibility.
Summary of Scoping Study metrics for the
20Mtpa scenario
BUSINESS REVIEW EXPLORATION
Alkane Resources Annual Report 2024
18
Field exploration
Exploration
Alkane holds several gold and copper tenements in Central West New
South Wales. Our FY24 exploration efforts focused on the Northern
Molong Porphyry Project (Boda and Kaiser) and the Tomingley Gold
Project.
Northern Molong Porphyry
Project (gold-copper)
Alkane Resources Ltd 100%
The Northern Molong Porphyry Project (NMPP) is
located in Central West New South Wales, centred
about 20 kilometres north of Wellington and
35 kilometres east of Dubbo. It covers an area of
180 square kilometres at the northern end of the
Molong Volcanic Belt of the Macquarie Arc, which is
considered highly prospective for large-scale porphyry
and epithermal gold-copper deposits.
Alkane’s exploration activity has identified at least
seven discrete magnetic/intrusive complexes within
a northwest trending transverse corridor. These are
the Kaiser (KIC), Boda (BIC), Boda South (BSIC), Driell
Creek (DIC), Murga (MIC), Windora (WIC), and the
Tompkins (TIC) intrusive complexes, which are all
located just outside the major Comobella Intrusive
Complex (CIC) (see map on page 19).
The corridor is defined by intermediate intrusives,
lavas and breccias, extensive alteration and
widespread, low-grade, gold-copper mineralisation.
Alkane owns five exploration licences within this
prospective corridor and has defined two significant
gold-copper resources at Boda and Kaiser (see page 14).
Exploration program
Exploration within the NMPP during FY24 focused
initially on infill drilling at Boda (including Boda 2-3)
and Kaiser to enable upgraded Mineral Resource
Estimates to be determined.
We also undertook exploration to grow our
understanding of the regional geological setting of
the district to aid the discovery of new gold-copper
porphyry deposits.
To assist with this, an airborne gravity survey was
flown over the entire NMPP in late 2023. Subsequent
3D inversion modelling and interpretation of the data
refined our understanding of the geology, which is
reflected in our updated geological map of the area
(page 19).
In early 2024, Alkane completed small drilling programs
at the Boda 2-3, Konigin, Driell Creek and Murga
prospects. In total, the drilling comprised 14 reverse-
circulation (RC) drill holes for a total of 4,408 metres
and four diamond core for a total of 4,062 metres.
19
Alkane Resources Annual Report 2024
BUSINESS REVIEW EXPLORATION
Nindethana
Fault
Fault
W indora
Finns
Fault
W ongajong
Fault
M oonlight
Fault
Kaiser
Fault
Fault
Com obella
Fault
Solar
Fault
M oonlight
Fault
Stoney
CIC
DCIC
BIC
BSIC
KIC
TIC
M IC
W IC
CIC
CIC
M acquarie
Thrust
32°20'S
149° 00'E
6420000m N
680000m E
E L 8 2 6 1
E L 4 0 2 2
E L 8 3 3 8
E L 8 3 3 8
E L 8 8 8 7
E L 6 2 0 9
E L 4 0 2 2
Bodangora
10km
W ellington
Saxa
Road
Goolm a
Com obella
Road
Rd
Forestvale
Road
(Great Artesian Basin)
Basin
Gunnedah
Haddington
Glen Hollow
Driell Creek
Kaiser
Boda
Boda 2‐3
Hillcroft
Gollan
Tom pkins
Gollan South
Gollan North
Com obella North
M urga
W indora
Ballim ore
Konigin
Boda 4
June 2024
Carboniferous granite
volcanics
Devonian ‐ Silurian sedim ents and
Gravity low (possible intrusion)
intrusive com plex)
M agnetic com plex (posssible
Uconform ity
‐ Intrusive com plexes (w ith nam e)
Ordovician volcanics and sedim ents
Faults
Thrust
0
5km
Alkane’s NMPP tenements, showing regional geology
BUSINESS REVIEW EXPLORATION
Alkane Resources Annual Report 2024
20
Tomingley Gold Project
Alkane Resources Ltd 100%
Alkane’s Tomingley Gold Project covers an area of
approximately 440 square kilometres, stretching
60 kilometres north-south along the Newell Highway
in Central West New South Wales. The prospective
belt extends from near the village of Tomingley in
the north (about 50 kilometres southwest of Dubbo),
through Peak Hill and almost to Parkes in the south.
The project incorporates Alkane’s currently active
Tomingley Gold Operations, the Tomingley Gold
Extension Project (founded on the San Antonio and
Roswell resources), and the inactive Peak Hill Gold Mine.
Exploration program
Alkane continues to explore the gold corridor
between Tomingley and Peak Hill, with the view to
defining additional resources to extend the life of the
Tomingley asset. To assist the definition of additional
drill targets, detailed drone-based magnetic and
airborne gravity surveys were completed in late 2023.
In early 2024, Alkane completed a small diamond core
and RC campaign at the Plains and El Paso prospects.
El Paso lies approximately two kilometres south of
the San Antonio deposit, and the Plains prospect lies
approximately one kilometre southeast of the Roswell
deposit.
An air-core (AC) program tested the eastern side
of the prospective belt east of the Tomingley Gold
Extension Project.
Air-core drilling also occurred at the Allendale
prospect, which is a gold-copper porphyry target
approximately five kilometres northwest of Tomingley.
In total, the drilling comprised 117 AC drill holes for
a total of 11,520 metres, five RC drill holes for a total
of 1,550 metres, and three diamond core for a total of
1,091 metres.
Alkane recently released a comprehensive summary
of NMPP exploration results, which demonstrate
strong potential for the discovery of new gold-copper
porphyry deposits (ASX Announcement 21 June 2024).
Konigin, Driell Creek and Murga
Results indicated the geology is favourable for
porphyry type environments; however, individual
drill results at Konigin and Murga showed weak
mineralisation. Drilling results from Driell Creek
(approximately five kilometres northwest of Kaiser)
intersected several intercepts of similar grade and
character to early results received at Boda before
its discovery. Further drilling at Driell Creek is now
considered a high priority.
Boda 2-3
During 2023 resource drilling, diamond core hole
BOD094 intersected a high-grade hydrothermal
breccia deep and to the west of Boda 2-3 (ASX
Announcement 25 August 2023).
Alkane tested this intercept along strike with two
diamond core holes in early 2024. The drilling
confirmed the high-grade chalcopyrite cemented
breccia has a strike length of greater than 100 metres
and is open along strike to the south and along dip.
This mineralisation lies outside the current Boda
Mineral Resource envelope. Due to its depth and
significant dislocation by major faulting, no further
drilling is planned at this stage. (For more details, see
ASX Announcement 21 June 2024).
Planned exploration in FY25
Significant potential exists for the discovery of further
deposits like Boda and Kaiser across the NMPP
tenement package. Planned regional exploration
for the next 12 months will focus on further drill
testing of the Driell Creek prospect to follow up
the significant gold-copper porphyry mineralisation
intersected in early 2024.
Alkane also plans to use a range of field techniques
to identify new targets, focusing on the Haddington,
Windora, Ballimore, Comobella North and Boda
4 prospects. Scheduled exploration will comprise
mapping, Induced Polarisation (IP) surveying, detailed
ground gravity, ANT (Ambient Noise Tomography)
passive seismic and air-core drilling utilising bottom
of hole litho-geochemistry over the large area
surrounding the Comobella Intrusive Complex (CIC).
This exploration forms part of Alkane’s FY25
exploration budget of approximately A$6 million.
21
Alkane Resources Annual Report 2024
BUSINESS REVIEW EXPLORATION
?
Barrabadeen
Creek
(Diversion)
Creek
Gundong
Parkes Thrust
Kenilw orth Fault
M ugincoble Fault
Portal
Production Drive
E L 5 9 4 2
Tomingley
N ew ell
H ighw ay
Kyalite
Road
O 'Learys
Lane
Back
Tom ingley
W est
Road
Peak Hill
M L 1 8 2 1
M L 1 8 5 8
E L 5 6 7 5
E L 8 6 7 6
E L 5 6 7 5
M cNivens
Lane
Patons
Cem etery
W estray
Barrabadeen
Jounam a
Sm iths
W yom ing
El Paso
Calom a
‐ U/G Resource 108,000oz
‐ Open Cut Production 153,000oz
‐ Historic Production ~70,000oz
PEAK HILL GOLD M INE
‐ Historic Production ~62,000oz
M YALLS UNITED
‐ Reserves 214,000oz
‐ Resource 406,000oz
SAN ANTONIO
‐ Resource 70,000oz
M cLEANS
‐ Reserves 449,000oz
‐ Resource 750,000oz
RO SW ELL
‐ Reserves 34,000oz
‐ Resource 444,000oz
oz
646,000
‐ Production
TO M INGLEY GOLD O PERATIO NS
Plains
G len Isla
M L 1 6 8 4
1AL‐057h
Cotton Form ation siltstone
Hornblende + plagioclase‐phyric diorite
M onzodiorite sill
Volcaniclastic sedim ents
Andesite
M ineralisation
Feldspar phyric dacitic intrusions
Septem ber 2024
0
5km
Feldspar phyric Andesite (elevated P)
Feldspar phyric Andesite
M ingelo Volcanics
610000m E
620000m E
6390000m N
6380000m N
148° 15' E
32° 35' S
32° 40' S
Northern section of Tomingley Gold Project, showing regional geology
22
Alkane Resources Annual Report 2024
BUSINESS REVIEW EXPLORATION
McLeans deposit
The McLeans deposit lies two kilometres south of
Tomingley, 500 metres northeast of the Roswell
deposit and adjacent to the production drive from
Wyoming One.
The maiden underground Inferred Mineral Resource
estimate was released with 870,000 tonnes at
2.51g/t gold for 70,000 contained ounces (see ASX
Announcement 13 September 2023). This has been
incorporated in the Tomingley Gold Extension Project
resources.
Peak Hill Gold Mine
Located 15 kilometres south of Tomingley, Alkane’s
Peak Hill Gold Mine operated from 1996 to 2005 as
an open cut heap leach. While the site is substantially
rehabilitated, it remains an active Mining Lease.
Technological advances and gold price increases in the
last two decades have led Alkane to re-evaluate the
economics of further development.
During FY24, the completion of a University of
Tasmania student research project enhanced
our understanding of the deposit alteration and
mineralogy. Alkane also commenced a soil sampling
project south of Peak Hill.
Although Alkane retains its Mining Lease and
Environment Protection Licence for Peak Hill Gold
Mine, any further mine development would require
further environmental assessment and government
approval.
Refer to page 27 for the Mineral Resource table.
Peak Hill
Planned exploration in FY25
Planned regional exploration continues to focus on
discovering new gold resources to provide future ore
feed for Tomingley.
Following the recent airborne geophysical surveys, a
14,000-metre AC drilling program will test recently
defined volcanic belts we consider highly prospective
for significant mineralisation. Any intersected shallow
mineralisation will be tested at depth by small RC and
diamond drilling campaigns. This will include known
significant mineralisation at the El Paso, Tomingley
Two (4.5km north of Caloma) and Plains prospects.
We also plan to explore the Trewilga (south of Peak
Hill) and Glen Isla areas for new targets using field
techniques such as high-resolution drone magnetics,
soil sampling and mapping including rock chip
sampling.
23
Alkane Resources Annual Report 2024
BUSINESS REVIEW EXPLORATION
Southern Junee Porphyry
Project (gold-copper)
Alkane Resources Ltd 100%
The Southern Junee Porphyry Project (SJPP) is located
in the Riverina region of New South Wales, centred
about 50 kilometres south of the large Cowal mine
(Evolution ~14.3Moz gold). It covers an area of
235 square kilometres at the southern extension of
the Junee-Narromine Volcanic Belt (J-NVB), which is
considered highly prospective for world-class gold-
copper porphyry deposits.
Following acquisition of three exploration licences
(EL5792, EL7982 and EL8025), inclusive of all data,
from Sandfire Resources Ltd in June 2023, Alkane
consolidated the tenements into one exploration
licence (EL9600). The project is 100% owned by
Alkane with no underlying royalties or liabilities.
During FY24, Alkane completed an airborne gravity
survey over the SJPP project area and commenced
interpretation of the results. All the historic drill core
from the project has been compiled at the Peak Hill
exploration base.
Armstrongs (gold)
Alkane Resources Ltd 100%
Located west of Parkes, the Armstrongs prospect
has similar geology to the Tomingley Gold Project
and historic drilling has identified low-grade gold
mineralisation over a 400-metre strike length.
In FY24, Alkane completed 49 AC drill holes for a total
of 2,412 metres to test the McGuiggans prospect.
McGuiggans is positioned along the London-Victoria
Fault and lies three kilometres south of the historical
London-Victoria Mine (~270,000oz gold endowment).
Rockley (base metals, gold)
Alkane Resources Ltd 100%
The Rockley Project is located 35 kilometres south
of Bathurst. Its three exploration licences cover
a portion of the late Silurian Mumbil Group, a
geological sequence considered highly prospective
for structurally controlled gold and McPhillamys-style
gold and base metal mineralisation.
During FY24, Alkane completed a fixed loop
ground EM survey within the Apsley target area to
assess potential for skarn-type gold and base metal
mineralisation. A seven-hole slimline RC drilling
program confirmed Cu-Zn skarn mineralisation
beneath the outcropping mineralisation in six of the
drill holes. Results were announced post year-end
(ASX Announcement 8 August 2024).
Other projects
Alkane’s other exploration projects in New South
Wales are Cudal (gold-copper-zinc) and Mt Conqueror
(gold). (Both Alkane Resources Ltd 100%). Trangie was
relinquished.
Exploration team
BUSINESS REVIEW EXPLORATION
Alkane Resources Annual Report 2024
24
Forbes
Dubbo
Nyngan
Parkes
Tottenham
Orange
West
Wyalong
Bathurst
Wellington
Northparkes
Cowal
Cadia Valley
Sunrise
Mineral Hill
Tritton
McPhillamys
CentralWestof
inset
NSW
Sydney
NSW
34°S
148°E
150°E
32°S
Armstrongs
Peak Hill
Cudal
Rockley
Tomingley
Armstrongs
TGO
Peak Hill
Cudal
TGO
TGO
Rockley
Tomingley
Southern
Junee
Porphyry
Southern
Junee
Porphyry
Northern
Molong
Porphyry
Northern
Molong
Porphyry
Mount
Conqueror
Mount
Conqueror
To Sydney
Burrendong
Dam
N
S
W
E
0
100
kilometres
Alkane
Resources Ltd
Alkane’s projects and operations in Central West New South Wales
MINERAL
RESOURCES AND
ORE RESERVES
Alkane Resources Annual Report 2024
25
Mineral Resources and Ore Reserves
Alkane reports Mineral Resources and Ore Reserves for the Tomingley
Gold Project and the Northern Molong Porphyry Project (Boda and Kaiser
deposits) as at 30 June 2024.
The Mineral Resources and Ore Reserves for the Tomingley Gold Project and the Northern Molong Porphyry
Project are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC 2012).
They were reported to the ASX on 4 September 2024. Any differences to those tables are corrections to
typographical errors; the assumptions and parameters detailed in that report are unchanged.
Mineral Resources are wholly inclusive of Ore Reserves.
Tomingley Gold Project
Identified Mineral Resources and Ore Reserves for the Tomingley Gold Project have been updated for
30 June 2024. The project includes:
• Tomingley Gold Operations production facility (Wyoming One, Wyoming Three, Caloma One and
Caloma Two deposits)
• Tomingley Gold Extension Project (San Antonio, Roswell and McLeans deposits), and the
• Peak Hill Gold Project.
Mineral Resources and Ore Reserves have been re-estimated to account for additional resources, mining depletion,
changes in gold price and operating costs during the 2024 financial year. The net result is an 11 percent increase in
reserve ounces.
The detailed estimates are set out in the tables on the following pages.
Tomingley Gold Project
Total Mineral Resources: 24.27Mt grading 2.12g/t Au (1,656,000oz)
Total Ore Reserves: 11.76Mt grading 1.9g/t Au (705,000oz)
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2024
26
Mineral Resources
Tomingley Gold Operations Mineral Resources (30 June 2024)
DEPOSIT
MEASURED
INDICATED
INFERRED
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Resources (cut-off 0.4g/t Au)
Caloma One
0
0
0
0
0
0
0
0
0
Subtotal
0
0
0
0
0
0
0
0
0
Underground Resources (cut-off 1.3g/t Au)
Wyoming One
1013
2.7
763
2.2
108
2.1
1,884
2.5
149
Wyoming Three
46
2.2
24
2.0
20
1.9
90
2.1
6
Caloma One
602
2.2
916
2.0
469
2.0
1,987
2.1
132
Caloma Two
351
2.4
1261
2.4
462
1.8
2,074
2.3
153
Subtotal
2,012
2.5
2,964
2.2
1,059
1.9
6,035
2.3
444
TOTAL
2,012
2.5
2,964
2.2
1,059
2.1
6,035
2.3
441
Apparent arithmetic inconsistencies are due to rounding.
Tomingley Gold Extension Project Mineral Resources (30 June 2024)
DEPOSIT
MEASURED
INDICATED
INFERRED
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Resources (cut-off 0.4g/t Au Roswell and 0.5g/t Au San Antonio)
Roswell
3,900
1.7
0
0
3,900
1.7
213
San Antonio
5,930
1.8
1,389
1.3
7,319
1.7
406
Subtotal
0
0
9,830
1.8
1,389
1.3
11,219
1.7
619
Underground Resources (cut-off 1.3 g/t Au and 1.3g/t Au McLeans)
Roswell
825
3.0
3,123
2.8
1,957
2.5
5,905
2.7
517
McLeans
0
0
870
2.5
870
2.5
70
Subtotal
825
3.0
3,123
2.8
2,827
2.5
6,775
2.7
587
TOTAL
825
3.0
12,953
2.0
4,216
2.1
17,994
2.1
1,206
Apparent arithmetic inconsistencies are due to rounding.
DEPOSIT
Resource
Category
Cut-Off
Tonnes
(Mt)
Gold Grade
(g/t)
Gold Metal
(koz)
Copper Metal
(%)
Proprietary U/G
Inferred
2g/t Au
1.02
3.29
108
0.15
TOTAL
1.02
3.29
108
0.15
Peak Hill Mineral Resources (30 June 2024)
Apparent arithmetic inconsistencies are due to rounding
Alkane Resources Annual Report 2024
27
Alkane Resources Annual Report 2024
MINERAL RESOURCES AND ORE RESERVES
Ore Reserves
Tomingley Gold Operations Ore Reserves (30 June 2024)
DEPOSIT
PROVED
PROBABLE
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Reserves (cut-off 0.4g/t Au)
Stockpiles
241
1.1
0
0
241
1.1
9
Subtotal
241
1.1
0
0
241
1.1
9
Underground Reserves (cut-off 1.3g/t Au)
Wyoming One
87
1.9
105
1.7
192
1.8
11
Caloma One
86
1.8
105
1.8
190
1.8
11
Caloma Two
48
1.8
3
1.2
50
1.8
3
Subtotal
220
1.8
213
1.8
433
1.8
25
TOTAL
461
1.5
213
1.8
674
1.6
34
Apparent arithmetic inconsistencies are due to rounding.
Tomingley Gold Extension Project Ore Reserves (30 June 2024)
DEPOSIT
PROVED
PROBABLE
TOTAL
Total Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Tonnage
(kt)
Grade
(g/t Au)
Open Pittable Reserves (cut-off 0.4g/t Au)
Roswell
0
0
3,900
1.7
3,900
1.7
213
San Antonio
0
0
4,100
1.6
4,100
1.6
214
Subtotal
0
8,000
1.6
8,000
1.6
427
Underground Reserves (cut-off 1.6g/t Au)
Roswell
881
2.4
2,202
2.4
3,082
2.4
236
San Antonio*
0
0
0
0
0
0
0
Subtotal
881
2.4
2,202
2.6
3,082
2.5
236
TOTAL
881
2.4
10,202
1.8
11,082
1.9
663
Apparent arithmetic inconsistencies are due to rounding.
*San Antonio underground reserves not determined at this time.
Alkane has governance arrangements and internal controls in place with respect to its estimates of Mineral
Resources and Ore Reserves including:
• oversight and approval of each annual statement by the Technical Director;
• establishment of internal procedures and controls to meet JORC Code 2012 compliance in all external
reporting;
• independent review of new and materially changed estimates;
• annual reconciliation with internal planning to validate reserve estimates for operating mines; and
• Board approval of new and materially changed estimates.
Mineral Resource and Ore Reserve Governance and Internal Controls
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2024
28
Comparative resources and reserves
Tomingley Gold Operations Comparative Mineral Resources (30 June 2023 to 30 June 2024)
DEPOSIT
2023
2024
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Open Pit
Wyoming One
0
0
0
0
0
0
Wyoming Three
0
0
0
0
0
0
Caloma One
0
0
0
0
0
0
Caloma Two
0
0
0
0
0
0
Subtotal
0
0
0
0
0
0
Underground
Wyoming One
2,088
2.4
163
1,884
2.5
149
Wyoming Three
90
2.1
6
90
2.1
6
Caloma One
1,800
2.1
123
1,987
2.1
132
Caloma Two
1,541
2.3
115
2,074
2.3
153
Subtotal
5,519
2.3
407
6,035
2.3
441
TOTAL
5,519
2.3
407
6,035
2.3
441
Apparent arithmetic inconsistencies are due to rounding.
Tomingley Gold Operations Comparative Ore Reserves (30 June 2023 to 30 June 2024)
DEPOSIT
2023
2024
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Open Pit
Wyoming One
0
0
0
0
0
0
Wyoming Three
0
0
0
0
0
0
Caloma One
0
0
0
0
0
0
Caloma Two
0
0
0
0
0
0
Stockpiles
329
1.0
11
241
1.1
9
Subtotal
329
1.0
11
241
1.1
9
Underground
Proven
442
1.9
27
220
1.8
13
Probable
729
1.7
40
213
1.8
12
Subtotal
1,171
1.8
68
433
1.8
25
TOTAL
1,500
1.6
79
674
1.6
34
Apparent arithmetic inconsistencies are due to rounding.
The primary differences from 2023 to 2024 are:
• Underground resources were added by extensional development drilling in Caloma One and Caloma Two
• Underground reserves added by development grade control drilling; and
• Underground reserves depleted by mining.
Alkane Resources Annual Report 2024
29
Alkane Resources Annual Report 2024
MINERAL RESOURCES AND ORE RESERVES
Tomingley Gold Extension Project Comparative Mineral Resources (30 June 2023 to 30 June 2024)
DEPOSIT
2023
2024
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Open Pit
Roswell
3,900
1.7
213
3,900
1.7
213
San Antonio
7,319
1.7
406
7,319
1.7
406
Subtotal
11,219
1.7
619
11,219
1.65
619
Underground
Roswell
5,550
2.7
489
5,905
2.7
517
McLeans
870
2.5
70
870
2.5
70
Subtotal
6,420
2.7
560
6,675
2.7
587
TOTAL
17,639
1.8
1,179
17,994
2.1
1,206
Apparent arithmetic inconsistencies are due to rounding.
NOTE: Alkane revised the Roswell Resource in February 2024 (ASX Announcement 27 February 2024) based on grade control drilling, which retroactively impacted the
’30 June 2023’ Roswell open pit and underground resource estimates.
Tomingley Gold Extension Project Comparative Ore Reserves (30 June 2023 to 30 June 2024)
DEPOSIT
2023
2024
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Tonnage
(kt)
Grade
(g/t Au)
Gold
(koz)
Open Pit
Roswell
3,900
1.7
213
3,900
1.7
213
San Antonio
4,100
1.6
214
4,100
1.6
214
Subtotal
8,000
1.65
427
8,000
1.65
427
Underground
Roswell
1,456
2.6
119
3,082
2.4
234
San Antonio
0
0
0
0
0
0
Subtotal
1456
2.60
119
3,082
2.40
234
TOTAL
9,456
1.8
547
11,082
1.9
663
Apparent arithmetic inconsistencies are due to rounding.
There was no change in Mineral Resources or Ore Reserves for the Peak Hill Gold Project. The recent history of the
Project was summarised in the 2021 Annual Resource and Reserve Statement (ASX Announcement 7 September
2021) and the JORC Tables documented in ASX Announcement 18 October 2018.
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2024
30
Northern Molong Porphyry Project
Alkane updated the Mineral Resource Estimates to define Indicated Resources within the broader Inferred Resource
gold-copper envelopes for the Boda and Kaiser deposits during FY24. Full details with accompanying JORC tables
were reported in ASX Announcements 30 May 2022 and 14 December 2023 (Boda) and 17 February 2023 and 29
April 2024 (Kaiser).
Boda and Kaiser Mineral Resources (30 June 2024)
Apparent arithmetic inconsistencies are due to rounding.
*The prices used to calculate AuEq are based on 12-month averages of US$1,950/oz gold and US$8,600/t copper, and A$:US$0.67. Recoveries are estimated at 87% for Cu
and 81% for Au at Boda and 81% Cu and 71% Au at Kaiser from metallurgical studies. Alkane considers the elements included in the metal equivalents calculation have a
reasonable potential to be recovered and sold.
DEPOSIT
INDICATED
INFERRED
TOTAL
METAL
Tonnes
(Mt)
Au
(g/t)
Cu
(%)
Tonnes
(Mt)
Au
(g/t)
Cu
(%)
Tonnes
(Mt)
AuEq*
(g/t)
Au
(g/t)
Cu
(%)
AuEq*
(Moz)
Au
(Moz)
Cu
(Mt)
Open Pittable Resource (cut-off 0.3g/t AuEq)
Boda
191
0.36
0.17
42
0.29
0.16
233
0.58
0.35
0.17
4.31
2.62
0.39
Kaiser
179
0.27
0.20
10
0.29
0.14
189
0.54
0.27
0.19
3.28
1.64
0.37
Subtotal
370
0.32
0.18
52
0.29
0.16
422
0.56
0.31
0.18
7.59
4.26
0.76
Underground Resource (cut-off 0.4g/t AuEq)
Boda
151
0.34
0.20
198
0.34
0.18
350
0.59
0.34
0.18
6.63
3.78
0.65
Kaiser
16
0.30
0.22
8
0.36
0.20
24
0.61
0.32
0.21
0.46
0.24
0.05
Subtotal
167
0.34
0.20
206
0.34
0.18
374
0.59
0.34
0.18
7.09
4.02
0.70
TOTAL
537
0.32
0.19
258
0.33
0.18
796
0.58
0.33
0.18
14.70
8.28
1.46
Northern Molong Porphyry Project
Total Mineral Resources (Indicated + Inferred):
796Mt grading 0.33g/t Au and 0.18% Cu (8.3Moz Au; 1.5Mt Cu)
(0.3g/t and 0.4g/t AuEq* cut-off) for 0.58g/t AuEq* (14.7Moz AuEq)
Alkane Resources Annual Report 2024
MINERAL RESOURCES AND ORE RESERVES
Boda-Kaiser
Alkane Resources Annual Report 2024
31
Competent Persons
The information in this report relating to Mineral Resource and Ore Reserve estimates has been approved by individuals having
sufficient experience to qualify as a Competent Person, as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’ (JORC 2012). Such experience relates to the style of mineralisation and type
of deposit under consideration, and the activity undertaken. All Competent Persons named below have provided prior written consent
to the inclusion of the matters based on their information in this report, in the form and context in which it appears.
Information relating to
Competent Person
Mineral Resources and Ore Reserves Statement as a whole
Mr D Ian Chalmers (FAusIMM, FAIG), who is Executive Director of
Alkane Resources Ltd.
Tomingley Gold Operations Mineral Resource estimate
Peak Hill Mineral Resource estimate
Mr Craig Pridmore (MAusIMM), who is Geology Manager
Tomingley Gold Operations and an employee of Alkane Resources
Ltd.
Tomingley Gold Operations Open Pit Ore Reserve estimate
Tomingley Gold Extension Project (San Antonio and Roswell) Open
Pit Ore Reserve estimate
Mr John Millbank (MAusIMM), an independent consultant
(Proactive Mining Solutions).
Tomingley Gold Operations Underground Ore Reserve estimate
Roswell Underground Ore Reserve estimate
Mr Christopher Hiller (MAusIMM), an independent consultant
(Hiller Enterprises Pty Ltd).
Tomingley Gold Extension Project (San Antonio, Roswell and
McLeans) Mineral Resource estimates
Boda and Kaiser Mineral Resource estimates
Mr David Meates (MAIG), who is Exploration Manager NSW and
an employee of Alkane Resources Ltd.
Previously reported information
All information in this report that relates to Mineral Resource or Ore Reserve estimates has been extracted from Alkane’s ASX
announcement dated 4 September 2024. Additional exploration results have been extracted from ASX announcements noted in the
text of the report.
The relevant ASX announcements are available to view on Alkane’s website. Alkane confirms that, other than mining depletion, it is
not aware of any new information or data that materially affects the information included in the relevant market announcement(s); in
the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed; and that the form and context in
which the Competent Person’s findings are presented have not been materially altered.
MINERAL RESOURCES AND ORE RESERVES
Alkane Resources Annual Report 2024
32
SUSTAINABILITY
REPORT
Alkane Resources Annual Report 2024
33
Alkane Resources Annual Report 2024
Sustainability at Alkane
Alkane strives to uphold high environmental, social and governance (ESG)
standards across all our activities. These sustainability foundations are
embedded in our business; they underpin our social licence to operate
and are integral to our ability to deliver value to all stakeholders.
Our approach
This Sustainability Report summarises Alkane’s
sustainability performance in FY24. The report is
structured around four sustainability pillars spanning
ESG: Governance, Our People, Communities, and
Environment.
Underpinning Alkane’s approach to sustainability
is our ESG Mission Statement, which aligns with
our company values. This ESG Mission Statement
represents our pledge to all stakeholders – including
investors, host communities, employees, government
bodies and the people of Australia.
Alkane Technical Director wins
Gavin Thomas Mining Award
Embedded a new Employee
Assistance Program at Tomingley
2
Supported three geology
Honours students
3
Recovered Aboriginal artefacts
from an open scatter site at
Tomingley
4
Consolidated support of the
Narromine Hospital Auxiliary via
the Tomingley Community Fund
5
Ordered new diesel/electric
hybrid underground mining fleet
6
Undertook a scrap metal clean-up
and recycling campaign
7
Key achievements FY24
1
Progressed establishment of
283 hectares of protected
conservation areas
8
SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Alkane Resources Annual Report 2024
34
Company Values
ESG Mission Statement
Integrity
We do what’s right
in our actions and
relationships.
Respect
We treat people and
the environment
with care.
Transparency
We are proactive in
communicating our
intent and outcomes.
Performance
We plan and execute
to deliver strong
business results.
• Ensure our choices and behaviours align with
our values.
• Maintain good environmental governance.
• Be responsive to the needs of all stakeholders.
• Minimise impacts from our operations.
• Stay positively engaged with host communities.
• Value the safety and wellbeing of our workforce.
• Expand sustainability reporting and disclosures.
• Communicate openly with stakeholders about
our activities.
• Actively seek sustainable solutions that have
a strong business case.
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=
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Four Sustainability Pillars
Adhering to a
corporate governance
framework
Operating with
integrity, respect and
transparency
Managing risks across
operations, finance
and sustainability
Ensuring a rewarding
and equal-opportunity
workplace
Valuing the safety
and wellbeing of our
workforce
Responding to the
needs of stakeholders
Working with host
communities to build
resilience
Respecting Aboriginal
and Torres Strait
Islander culture and
traditions
Managing water,
emissions and waste
responsibly
Rehabilitating the land
we disturb
Enhancing biodiversity
and land capability to
offset our impact
Governance
Our People
Communities
Environment
35
Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT SUSTAINABILITY AT ALKANE
Governance
Alkane administers corporate governance with openness and integrity,
employing comprehensive systems of control and accountability.
Organisational governance
Alkane’s corporate governance framework is based
on the principles and recommendations of the
ASX Corporate Governance Council (Corporate
Governance Principles and Recommendations 4th
edition). The key features of this framework are set
out in our annual Corporate Governance Statement,
available on the Alkane website.
Board and sub-committees
The Alkane Board comprises five directors and two
joint company secretaries with skills and experience
across technical, operational, finance, broking and
general business:
• Ian Gandel – Non-executive Chair
• Nic Earner – Managing Director
• Ian Chalmers – Technical Director
• Tony Lethlean – Non-executive Director
• Gavin Smith – Non-executive Director
• Dennis Wilkins – Joint Company Secretary
• James Carter – Joint Company Secretary
Two of the non-executive directors, Mr Lethlean and
Mr Smith, are considered independent. The Board
continues to seek additional independent members
who will bring complementary skill sets and diversity
to Alkane’s leadership. Details of directors are
presented on page 72 of this report.
The Board has four established sub-committees, each
with its own charter:
• Audit Committee
• Nomination Committee
• Remuneration Committee
• Risk Management Committee
ESG considerations are governed by the Risk
Management Committee, which comprises members
of the Board, including the Managing Director, plus
key senior managers responsible for operations,
finance and administration. This committee assists
the Board with matters pertaining to sustainability –
setting sustainability strategy, guiding sustainability
governance, business and social performance, and
managing sustainability risks and opportunities.
Corporate policies and procedures
Alkane’s corporate governance practices are
underpinned by a suite of corporate policies and
procedures, including Appointment and Independence
of Directors, Diversity, Code of Conduct, Risk
Management, Anti-bribery and Corruption, Modern
Slavery and Safety, Health and Sustainability.
Alkane’s Corporate Governance Statement is
available on our website, along with the Board
charter and details of Board sub-committees.
Also listed are key policies and procedures,
including those pertaining to appointment and
independence of directors, diversity, code of
conduct, risk management, and anti-bribery and
corruption.
https://www.alkane.com.au/company/
governance/
Corporate Governance Statement
SUSTAINABILITY REPORT GOVERNANCE
Alkane Resources Annual Report 2024
36
At the August 2023 Gold Industry Awards, Alkane Technical Director, Ian Chalmers,
was the proud recipient of the prestigious Gavin Thomas Mining Award – recognising
a remarkable 50-year career.
Mr Chalmers commenced at Alkane over three decades ago, initially as a consultant
and Technical Director, and later as Managing Director from 2006 to 2017. For many
years, he has steered Alkane’s success in minerals exploration and development across
Central West New South Wales.
Beyond his professional accomplishments, Mr Chalmers is deeply committed
to education and knowledge sharing. He has forged strong ties with academic
institutions and industry organisations, fostering the growth of the next generation of
geologists. His financial support for geosciences in school programs and his role as a
fundraising ambassador for Australian Earth Science Education reflect his dedication
to nurturing future talent.
Mr Chalmers’ deep-seated belief in environmental responsibility has also driven him to
collaborate with other experts to minimise the impact of mining. This holistic approach
underscores his commitment to sustainable practices and ethical resource extraction.
Alkane Technical Director wins Gavin Thomas
Mining Award
From left: Alkane Chairman Ian Gandel, Technical Director Ian Chalmers and Managing Director Nic Earner celebrating Ian's award.
37
Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT GOVERNANCE
Ethical business practices
In keeping with our core values, Alkane operates with
integrity, respect and transparency across the business
and our supply chain. The following policies (available
on our website) guide the actions of our leaders,
employees, contractors, suppliers and customers:
Code of Conduct – Alkane is committed to
conducting itself with integrity, honesty and
fairness in all business practices and to observing
the rule and spirit of the legal and regulatory
environment in which the group operates.
Anti-Bribery and Corruption (ABC) Policy – Alkane
is committed to maintaining a high standard of
ethical conduct in all business dealings, compliance
with international ABC regulations, and an open
and transparent management approach to avoid
exposing ourselves to potential conflicts of interest.
Whistleblower Policy – Alkane is committed to
supporting a confidential and anonymous process
whereby persons can report any matter deemed to
be illegal, contrary to the policies of the company
or in some other manner not right or proper.
Modern Slavery Policy – Alkane is committed to
implementing and enforcing effective systems and
controls to minimise the risk of modern slavery
taking place anywhere in our business or in any of
our supply chains.
Modern Slavery Statement
Alkane’s first Modern Slavery Statement under the
Australian Government’s Modern Slavery Act 2018 was
submitted in October 2022.
The initial statement submitted in 2022 noted
Alkane’s risk of exposure to modern slavery as low.
Alkane has continued to pursue its undertakings and
commitments with respect to Modern Slavery, which
include:
• Incorporating modern slavery clauses into all
contracts. These require suppliers to comply with
modern slavery legislation and provide Alkane
with audit rights to confirm;
• Updating our market approach documentation
(invitations to tender, requests for proposals and
supplier application forms) to require prospective
suppliers to identify the location of manufacture
of any goods supplied; and
• Seeking and receiving demonstrations of best
practice and the absence of modern slavery in
the supply chains of existing suppliers in at-risk
industries (clothing and apparel).
Additional actions for the coming period will include
further investigations into other potentially at-risk
supply chains, including electronics and reagent
supply.
We will continue to report the steps Alkane is taking
to assess and address modern slavery risks in future
annual statements.
Tomingley – Wyoming One open cut with underground portal
SUSTAINABILITY REPORT GOVERNANCE
Alkane Resources Annual Report 2024
38
Regulatory and compliance
Alkane complies with the regulations of the
Corporations Act 2001, Australian Accounting
Standards, and other mandatory professional reporting
requirements (refer to the Financial Report).
Some of the key ESG-themed reports submitted
annually include:
• Modern Slavery Statement
• Workplace Gender Equality Agency
• National Pollutant Inventory
• National Greenhouse and Energy Reporting
• Annual return to the NSW Environment
Protection Authority
• Annual rehabilitation management plans
Risk management
Alkane is committed to the active management
of risks to operations via the Risk Management
Committee, which routinely reviews Alkane’s risk
management framework to ensure it is fit for purpose.
As outlined in Alkane’s risk management policy,
our risk management framework considers both
strategic and organisational risks. The company’s
Risk Management Coordinator is tasked with the
responsibility of keeping the risk management policy,
framework and registers updated, subject to formal
approval of policy amendments by the Board.
Financial risks & IT
The Audit Committee is responsible for assessment,
monitoring and management of financial risks, which
include IT. Periodically Alkane commissions external
consultants to perform diagnostics and reviews of
internal controls and IT maturity and cyber security.
Post the 2024 fiscal year, Alkane undertook a
desktop-style review aimed at evaluating the
company’s privacy protection protocols. This included
an analysis of relevant artefacts and consultation with
key stakeholders. Following this review, Alkane has
developed:
• a privacy policy that aligns with the Australian
Privacy Principles and Obligations under the
Privacy Act 1988;
• procedures congruent with the privacy policy,
designed to guide the company in consistent
handling of personal information in accordance
with established best practices and legal
requirements; and
• a breach notification plan to help manage and
mitigate the impact of data breaches, with clear
guidelines for action and compliance with legal
notification duties.
Material risks
The company’s primary material risks are described
in the Directors’ Report (see page 78). They include:
Mineral Resource and Ore Reserve estimates;
production, cost and capital estimates; operating risks;
exploration risks; gold prices; taxation; community
relations; cyber security risks; government regulation;
debt and hedging covenants; government policy and
permits; climate-related risks.
Alkane continues to review and update the corporate
risk register, focusing on the resourcing required to
manage key risks.
Operations
Tomingley Gold Operations continues to monitor
and audit critical controls as part of its ongoing risk
management process. A specialised software package
assists with the management of the complexities for
the high-level risks.
To minimise environmental risks, Alkane strives
to conduct activities to the highest standard of
environmental obligation, including compliance with
all environmental laws and regulations.
Tomingley
39
Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT GOVERNANCE
Our People
Alkane is committed to providing a safe, rewarding and
equal-opportunity workplace.
Workforce
Alkane is headquartered in Perth, Western Australia,
where many of our centralised services and executive
and senior managers are located. The remainder of
Alkane’s workforce is in New South Wales, with the
largest number (almost 90 percent) at Tomingley Gold
Operations southwest of Dubbo.
At year-end, Tomingley had approximately 280
employees (excluding contractors and subcontractors)
across geology, mining, processing, finance and
administration, maintenance, work health and safety
(WHS), and environment. Since Tomingley is a residential
operation and does not support a ‘fly-in/fly-out’ scheme,
the majority of our workforce lives in the local area.
Alkane’s experienced exploration team has its main
premises and core yard in Orange (Central West New
South Wales), along with additional field facilities and
core yard at the decommissioned Peak Hill Gold Mine.
Alkane workforce by location
(30 June 2024)
6
Dubbo and Peak Hill
16
Head Office/Perth
347
Tomingley
including contractors and casuals
11
Exploration
including contractors and casuals
380 in total
313 employees and casuals
67 FTE contractors
SUSTAINABILITY REPORT OUR PEOPLE
Alkane Resources Annual Report 2024
40
Following the extensive Boda-Kaiser resource drilling
program, we reduced and restructured our exploration
team during FY24 (primarily casual staff who had
come onboard during this busy period) to reflect the
needs of our exploration program over the next 12
months.
At Peak Hill Gold Mine, Alkane also employs a
site supervisor who maintains the mining leases
and infrastructure while the site is under care and
maintenance. We also have a shopfront office in the
town centre of Dubbo.
At financial year-end, Alkane had 313 personnel
engaged in the business, plus an additional 67 (full
time equivalent) contractors and subcontractors at
Tomingley.
Diversity and inclusion
Alkane is committed to actively managing diversity
at all levels of the company, where diversity may
result from a range of factors including age, gender,
disability, ethnicity, marital or family status, religious
or cultural background, sexual orientation and gender
identity. We value the unique contributions made
by people from all backgrounds, experiences and
perspectives.
Alkane’s commitments are outlined in our Diversity
Policy, which addresses equal opportunities in the
hiring, training, flexible working practices and career
advancement of directors, officers and employees.
We recognise the particular importance of attracting
women to join the company and the mining industry
more generally.
In support of improving overall female representation
across the company, the Board has the following
objectives, as outlined in the company’s Corporate
Governance Statement:
• By 30 June 2027, at least 30 percent of directors
on the Board will be female.
• By 30 June 2027, women will represent greater
than 18 percent at all levels of the organisation.
To arrive at this figure, we considered the average
percentage of women working in ‘Metal Ore
Mining’ according to Australia’s Workplace Gender
Equality Agency for companies of different sizes.
• Hiring practices will continue to target female
candidate representation.
As stated in the Diversity Policy, Alkane does not
tolerate any form of discrimination, harassment,
vilification and victimisation.
Tomingley
To celebrate International Women’s
Day in March 2024, Tomingley invited
all female employees to a casual lunch
on-site. Although many couldn’t make it
through rostering conflicts or leave, those
who attended enjoyed the opportunity to
gather with other women for a time.
International Women’s Day 2024
41
Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT OUR PEOPLE
Diversity performance
The table below indicates the number and percentage
of female and Aboriginal and Torres Strait Islander
(ATSI) employees at Alkane (excluding Tomingley
contractors/subcontractors) at year-end for the past
three years.
Alkane female and ATSI employees
30 June 2022
30 June 2023
30 June 2024
Women
25 (9%)
32 (12%)
32 (10%)
Aboriginal and Torres Strait
Islander
35 (13%)
32 (12%)
32 (10%)
Numbers include casuals but not contractors/subcontractors
At year-end, the Tomingley workforce included 29
people identifying as Aboriginal and Torres Strait
Islander (ATSI) and 26 women.
Tomingley continues to encourage diverse candidates
to apply for all roles include using gender-neutral or
female-positive language in recruitment material and
creating career profiles of Tomingley employees with
diverse backgrounds.
We also continue to employ some women with less
mining experience, with the view to training them in
the desired skills. In a number of cases, these women
have relocated to the Tomingley area with their more
industry-experienced partners, also employed by
Alkane.
Numbers include casuals but not contractors/subcontractors.
Numbers of Tomingley women by role
Manager
Supervisors
Professionals (geologists, environmental and planner)
Finance/Administration
Operators
Trades
TOTAL
0
5
10
15
20
25
30
FY22
FY23
FY24
SUSTAINABILITY REPORT OUR PEOPLE
Alkane Resources Annual Report 2024
42
Our people in focus
Shantelle,
Metallurgy Technician
“This is the most stimulating job I’ve
ever had. Every day as a met tech
is completely different. I’ve always
loved learning new things and found
the whole idea of ‘taking dirt and
making gold’ rather intriguing.”
Shantelle is one of a select group of employees at Tomingley: among her many duties
as a metallurgy technician is the important job of pouring the gold. When the time
came to pour the gold bar containing Tomingley’s 500,000th ounce, Shantelle was
thrilled to be given the job.
Following a short stint as a laboratory technician in 2016, Shantelle re-joined our
metallurgy team in 2020. A year later, she became the first Tomingley lab tech to
progress to metallurgy technician – a testament to her commitment to excellence and
continuous improvement.
Aside from gold pouring, her role involves assisting the metallurgists, maintaining
and calibrating equipment, troubleshooting plant issues, production sampling, and
performing metallurgical testwork. She also unofficially runs the lab and is the primary
lab trainer for new recruits.
Shantelle isn’t fazed by being one of few women on the metallurgy team. Her everyday
approach is to keep a sense of humour and get on with what she needs to do. She
says the whole team has each other’s backs, and everyone is willing to hear different
perspectives and keep learning.
Having started a family instead of finishing high school, Shantelle had no formal
qualifications when she started working at Tomingley. Over the past few years, Alkane
has supported her to complete a Certificate 3 in Laboratory Skills, with a Certificate
4 in Laboratory Techniques underway. Shantelle is proud she’s been able to continue
learning and growing in her job and making a positive contribution to the team.
43
Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT OUR PEOPLE
Health, safety and wellbeing
Alkane takes protecting our employees seriously.
At Tomingley, our gold mining and production
facility, we prioritise safety and strive for continuous
improvement of the site’s Safety and Health
Management System. Alkane also has health and
safety management systems in place for Peak Hill Gold
Mine and our exploration team, based in Orange.
Safety approach at Tomingley
The health, safety and wellbeing of our employees
is our highest priority at Tomingley. We embed
safety into every decision and action to drive safe
production. Our employees are actively encouraged
to assess potential risks and think critically about
what could go wrong. We maintain a strong focus on
leading indicators to drive continuous improvement in
safety performance.
Tomingley has a dedicated Work Health and
Safety (WHS) team that operates throughout the
organisation. This team is responsible for ensuring
employees receive the necessary training, enhancing
hazard identification skills within the workforce,
implementing effective safety systems and controls,
and monitoring compliance with the site’s safety
management systems.
We are committed to curtailing injuries, preventing
catastrophic incidents, and maintaining our record of
zero fatalities.
A key focus in FY24 was strengthening internal
governance and verification of controls in the
workplace.
Tomingley safety programs and
initiatives
Back 2 Basics initiative
During the year, Tomingley management identified
several areas needing improvement. In response,
the site adopted a practical approach that balances
Tomingley workplace culture with industry
performance benchmarks. The ‘Back 2 Basics’
initiative emphasises core principles of hazard
identification, control, and reporting, and fosters
active participation from the entire workforce. The
number of hazards being identified continues to
improve year on year. This demonstrates workforce
engagement and commitment to working in a safe
workplace.
Safety and Health Management System
In FY24, we further strengthened our Safety and
Health Management System by thoroughly reviewing
our safety training programs. This led to the creation
of the Tomingley Training Strategy, which focuses on
key elements of the training systems, including:
• Framework Development
• Process Improvement
• Compliance Improvement, and
• People Development.
Managing principal hazards
Our Fatal Hazard Program continued to evolve in
FY24. A structured auditing campaign has been
developed and implemented, allowing for each
Principal Hazard Management Plan to be audited or
controls verified throughout the year.
SUSTAINABILITY REPORT OUR PEOPLE
Alkane Resources Annual Report 2024
44
Tomingley
Jack grew up on a farm between Tomingley and Narromine and was contract-
harvesting in Queensland when his mum spotted the advertised apprentice electrician
position at Tomingley. The timing and opportunity were ideal, since Jack had decided
upon an electrical trade after a period of travel. Leveraging the signal booster on the
header, he got his application in and joined the Tomingley team in 2022.
Now in his third year as an apprentice electrician, Jack has worked in each of Tomingley’s
main areas of operation, spending the first year in the processing plant. He then
moved to underground, where the electrical team is responsible for safely operating
and maintaining electrical infrastructure, as well as servicing and fixing equipment.
Jack is now back on the surface undertaking project work. These include major
electrical installations, such as power upgrades and new backup generators, largely
related to the Tomingley Gold Extension Project and processing plant upgrade.
The best thing about his job, says Jack, is the variety of work and the fact he never
knows what each day will look like. He thrives on learning from the different members
of the electrical team, who each have their own techniques.
Alongside his daily work, Jack assigns about a day per week to his TAFE studies and
assessments. These are almost complete, and he’s now looking forward to becoming a
fully qualified electrician at Tomingley next year.
Our people in focus
Jack,
Apprentice Electrician
“I really enjoy the variety of my job
and look forward to going to work
each day. I work with a great group
of people who are always willing to
give me a hand and help me learn.
The whole team is friendly
and supportive.”
SUSTAINABILITY REPORT OUR PEOPLE
45
Alkane Resources Annual Report 2024
Safe 2 Handle program
During the year, Tomingley continued with the
High-Risk Manual Tasks – Participative Ergonomics
(Safe 2 Handle) program, originally launched in
FY22. We continued the quarterly presentations
and site interventions with a Safe 2 Handle exercise
physiologist.
However, the soft tissue injury rates at Tomingley
indicate we need to increase the intensity and
availability of training and awareness around manual
handling and task ergonomics. In FY25, the Safe
2 Handle program will include quarterly training
and awareness sessions for all crews, ergonomic
assessments ‘at the rock face’, and observations and
an onsite physio one morning each week.
The Safe 2 Handle program leverages wearable
technology to identify tasks that involve significant
physical strain and trains employees on how to
manage these tasks more effectively or redesign them
to reduce risk.
This demonstrates that Tomingley considers
preventative controls as well as mitigating factors
when managing soft tissue injuries.
Projects for FY25
In the coming year, the WHS team intends to progress
the following projects:
• Rollout of updated site induction – A review has
identified a lack of mining knowledge among new
employees joining the operation. The updated
site induction will cover legislative requirements
in addition to generic mining procedures and
processes to plug this knowledge gap.
• Rollout of Safe 2 Handle app – We’ve identified
the need for more education around manual
handling and task ergonomics (see earlier).
• Streamlined ERT training – In FY25, the ERT
training programs will be streamlined to allow the
teams to reach their qualifications in a shorter
timeframe.
• Leadership training for supervisors – Tomingley
will implement a program to upskill operational
supervisors to enhance their people management
skills, including accountability for safety and the
wellbeing of the crews.
In FY24, there were 21 recordable injuries at the Tomingley site: eight Lost Time Injuries (LTI) and 13 Medical
Treated Injuries (MTI). The total recordable injury frequency rate (TRIFR) was 31.22, a 10% percent increase
on FY23 (TRIFR of 28.08). There were also 48 first aid injuries treated.
Tomingley safety performance
Source data
FY 2022
FY 2023
FY 2024
Tomingley TRIFR
13.44
28.08
31.22
NOTE: Tomingley has adjusted the calculation methods for the TRIFR and applied the new calculations
retrospectively to FY23 and FY22. The number now represents the frequency rates per million hours to align
with the NSW Metalliferous Mining average TRIFR calculations.
SUSTAINABILITY REPORT OUR PEOPLE
Alkane Resources Annual Report 2024
46
In July 2023, Tomingley engaged a new Employee Assistance Program (EAP) provider
in Lifeline Central West, which is linked to the Lifeline charity local to Dubbo, Orange
and Bathurst. The organisation has psychologists and counsellors available 24/7
to speak with our employees or their families if needed, and a crisis team available
quickly in the event of a serious incident on site.
The change to a local provider has been welcomed by our employees, with the number
accessing the service increasing sixfold. The Lifeline Central West team visited site
and addressed every crew to build relationships and destigmatise the decision to seek
counselling.
Lifeline Central West also provides training in mental health first aid (MHFA) – to
equip individuals with greater ability to recognise the signs and symptoms of mental
health struggles and how to provide initial support. All Tomingley senior leaders
completed a two-day MHFA training course, and all supervisors completed a half-day
Accidental Counsellor training course.
Prioritising mental health
Exploration team
Alkane’s exploration team undertakes an annual
review of the exploration safety management system,
safe work practices, and annual safety targets.
In FY24, we updated all our safety work procedures,
following the safety management system review in
the preceding year. During the reporting period, the
exploration team had zero reportable injuries.
Our targets for FY25 are to maintain a negligible rate
of injuries and to establish a training competency
register.
Field exploration
SUSTAINABILITY REPORT OUR PEOPLE
47
Alkane Resources Annual Report 2024
Communities
Alkane respects and strives to respond to the needs of all our
stakeholders. We communicate with openness and integrity and aim to
leave a lasting positive legacy for our host communities.
Stakeholder engagement
Alkane engages regularly with a range of stakeholders.
Our social licence to operate relies upon sustained
positive relationships with our employees, contractors,
neighbours, local Aboriginal and host communities,
government and industry bodies, and investors.
Host communities
Alkane is an active and engaged member of the
communities in which we live and operate – in
particular Narromine Shire, Parkes Shire and the
Dubbo Regional local government area in Central
West New South Wales.
We take a long-term and respectful approach to
building and nurturing community relationships. This
begins from the earliest stages of exploration and
continues through project development, operations,
and ultimately full site rehabilitation.
DUBBO
WELLINGTON
PARKES
NARROMINE
Tomingley
Peak Hill
Bodangora
Tomingley Gold Operations
Peak Hill Gold Mine
Boda-Kaiser Project
DUBBO
REGIONAL
COUNCIL
NARROMINE
SHIRE
COUNCIL
PARKES
SHIRE
COUNCIL
Map showing NSW Shires and Alkane projects
SUSTAINABILITY REPORT COMMUNITIES
Alkane Resources Annual Report 2024
48
Dubbo Regional Local Government Area,
Boda-Kaiser Project
Alkane has been embedded in the Dubbo Regional
Local Government Area for more than 20 years. Over
that time, our Dubbo office has provided technical
and administrative support for all our activities across
tenements in NSW.
Our deep relationships with the Dubbo community
provide a strong foundation for our ongoing
exploration and potential development activities.
Our Boda-Kaiser Project (part of the Northern Molong
Porphyry Project) lies near the historic mining village
of Bodangora. Development of Boda-Kaiser would
bring a long-term viable industry to Wellington,
accompanied by large economic benefits and significant
change to this highly productive agricultural environment.
Over the past several years, we have strengthened
our relationships with these communities through
engagement, sponsorships and, more recently, a
community newsletter.
Parkes Shire, Peak Hill Gold Mine
Alkane has been part of the Peak Hill and Parkes Shire
communities since operating Peak Hill Gold Mine from
1996 to 2005. We still use the site to host our Central
West exploration base and core yard. After three
decades, we continue to nurture positive relationships
and remain active in the community.
The rehabilitated Peak Hill Gold Mine open cut
landscape is open to the public, providing a unique
opportunity for visitors to learn about modern mining
and land rehabilitation. We also own historic buildings
in Peak Hill that are leased for very low rents to
community organisations and contributed funds used
to refurbish the historic Carrington Hotel.
Eric Woods Park, Tomingley
Alkane raffle winner at the Peak Hill Show, August 2024
Narromine Shire, Tomingley Gold Operations
Over more than 20 years, Alkane has earned our
social licence to operate at Tomingley, evidenced by
the community acceptance of our Tomingley Gold
Extension Project (approved with only one objection
in February 2023).
We have established positive cooperative
relationships with the communities around Tomingley
village, Dubbo and the broader Narromine Shire. Our
regular engagement activities include participation on
the Community Consultative Committee, publication
of community newsletters, sponsorship programs and
participation in community events.
49
Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT COMMUNITIES
From day one of our activities in Central West New South Wales, Alkane has made an
effort to be present, approachable and accessible in our host communities. Our shop-
front office in the Dubbo town centre is a permanent hub where community members
can ask questions, provide feedback, and pick up the latest newsletter.
Alkane also staffs a company booth at each of the local agricultural shows in Dubbo,
Wellington and Peak Hill, where our major projects are located. We’ve been a major
sponsor of the Peak Hill show for almost 30 years.
We believe these shows, which are widely attended community events, are an
important opportunity for our team to talk to locals, receive feedback and disseminate
information about projects in a casual environment. Visitors to our booth can also
handle pieces of ore and discover more about exploration, mining, rehabilitation
activities and gold production.
We value the opportunity to engage with community members and help them see
Alkane as more than a faceless mining and exploration company.
Present, approachable and accessible
Members of the community visiting Alkane’s stand at the Dubbo Show 2023.
SUSTAINABILITY REPORT COMMUNITIES
Alkane Resources Annual Report 2024
50
Key community engagement activities in FY24
• Tomingley Community Consultative Committee
meetings – August 2023, November 2023,
February 2024, May 2024
• Tomingley community newsletters – July 2023,
November 2023, March 2024
• Bodangora community newsletter (Boda-Kaiser) –
November 2023, May 2024
Alkane activities
Community activities and events
• Attended careers events
װDubbo Secondary College careers day
(9 May 2024)
װNSW Mining Careers Dinners in Dubbo
(20 June 2023) and Orange (22 May 2024)
• Hosted visits to Tomingley Gold Operations
װClontarf Narromine and Dubbo College Senior
Campus Academies (12 April 2024)
• Supported shows and festivals
װSponsored and staffed a booth at the Peak Hill
Show (August 2023)
װSponsored and staffed a booth at the Wellington
Vintage Fair (2-4 March 2024)
װSponsored and staffed a booth at the Wellington
Show, including yard dog trials (4 May 2024)
װStaffed a booth at the Dubbo Show
(10-12 May 2024)
• Tomingley community consultation for Tomingley
Gold Extension Project (Modification 1) –
July-August 2023
• Presented to community organisations, including:
װWellington Maranatha House Aged Care facility
(11 October 2023)
װYindyamarra Healing Men’s Group Wellington
(May 2024)
װDubbo Golf Club Veterans Tournament –
occasional speaker (21 Sep 2023)
• Sponsored Cudgegong Jump Club’s horse trials
(2-3 December 2023)
• Attended Bodangora informal community meeting
(5 February 2024), where Alkane’s Managing
Director talked about Boda-Kaiser
• Attended “Thank you” luncheon hosted by
Narromine Hospital Auxiliary for funding
contributions (10 May 2024)
Wellington
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Other stakeholders
Government, industry and education
Alkane is actively engaged with key government
and industry bodies that have oversight of mining
and related activities in New South Wales. Alkane
advocates for the metalliferous mining and exploration
sectors via participation in the following organisations:
• NSW Minerals Council – Alkane personnel
represent the company on most of the special
interest committees and working groups (including
Executive, Environment & Community, Exploration
and OH&S Committees; and ESG, Rehabilitation
and Mine Closure, Communications and Water
Working Groups).
• Association of Mining and Exploration Companies
– Alkane is a member of this peak industry body
for the Australian resources sector.
• Water NSW Macquarie-Cudgegong Customer
Advisory Group – Alkane is represented in this CAG,
which provides a forum for Water NSW to consult
with a broad cross-section of customers on issues
relevant to performance and delivery of services.
• RDA Orana and Stable Group – Orana Hunter
Connections and Beyond Business Case and
Transport Study – Alkane personnel contributed
data on its projects that have linkages to Port of
Newcastle.
• Parliamentary enquiry – Alkane submitted a
response to the New South Wales Parliamentary
Inquiry into current and potential impacts of gold,
silver, lead and zinc mining on human health,
land, air and water quality in New South Wales.
The Legislative Council delivered its findings and
recommendations on 15 December 2023
(Report 63).
• Mayoral Developers Forum – Alkane attended
this forum initiated by Dubbo Regional Council to
update local developers on the status of planning
pipeline and future developments (19 June 2024).
Alkane’s exploration team shares knowledge through
papers, participation in selected industry forums and
field trips, and hosting visits to Alkane projects by
industry and educational groups. These enable us to
connect with other professionals in the industry and
discuss new exploration techniques and developments
in the region. Activities in FY24 included:
• Monthly technical industry talks/meetings in
Orange and Parkes run by the Central West
Exploration Discussion Group (CWEDG) and
the NSW branch of the Australian Institute of
Geoscientists (AIG).
• AusIMM Canberra Student Chapter visited Peak
Hill Gold Mine (15 September 2023).
• NewGenGold conference (Perth) – Alkane
presented on the Boda discovery story
(14-15 November 2023).
• NSW Minerals Council’s 2024 Exploration &
Tenures Forum – Alkane presented on the NSW
land access framework using real case studies
from one of our projects (6 May 2024).
• Fleet Space Technologies Macquarie Arc Field
Trip – Alkane exploration geologists participated in
this three-day event, giving short talks at Peak Hill
Gold Mine and the Boda-Kaiser Project
(23-25 May 2024).
SUSTAINABILITY REPORT COMMUNITIES
Alkane geologists discussing NMPP geology at Kaiser during Fleet Space Technologies Macquarie Arc Field Trip.
Alkane Resources Annual Report 2024
52
Alkane’s formal investor communications are
complemented by a series of explanatory videos
and presentations published on our website, where
aspects of projects are discussed in greater detail.
• Tomingley Five Year Plan webinar (June 2024)
• Boda-Kaiser Scoping Study webinar (July 2024)
In FY24, Alkane’s Managing Director and/or Executive
team attended the following investor events:
• Australian Gold Conference (August 2023)
• Gold Forum Americas (September 2023)
• Swiss Mining Institute (November 2023)
• Corporate Storytime podcast (February 2024)
• Bell Potter Unearthed (February 2024)
• Gold Forum Europe (April 2024)
• Noosa Mining Investor Conference (July 2023)
• RIU Sydney Resources Round-up Conference
(May 2024)
• 121 Mining Investment Conference in London
(May 2024)
Alkane also held two investor briefing days in Sydney
and Melbourne following the Annual General Meeting
in November 2023.
Alkane actively supports promotion of careers in earth
sciences and mining. Activities in FY24 included:
• Australian Earth Science Education (AusEarthEd) –
Alkane is a sponsor of AusEarthEd, an organisation
that aims to grow awareness of career opportunities
in earth sciences and provide real-world context
and resources for teachers and students.
• Teacher Earth Science Education Program –
Alkane sponsored the program and provided rock
samples from Peak Hill for the teaching rock kits
they give to schools.
• Geological Society of Australia – Alkane was a gold
sponsor of the Earth Sciences Student Symposium
(29-30 November 2023).
• UNSW Geoscience Society – Alkane sponsored
this student-run society and presented at industry
night (April, July 2024).
• AusIMM Student Meets Industry events (Sydney,
Wollongong) – Alkane representatives presented
an overview of graduate opportunities at
Tomingley Gold Mine (29 February and
20 March 2024)
We also supported three tertiary Honours students
during the FY24 financial year:
• University of Tasmania geology Honours student
(to November 2023) – Alkane supported a study
of the deep mineral profile at Peak Hill Gold Mine
in 2023.
• University of New South Wales geology
Honours student (to August 2024) – This project
investigated the Tomingley ore-bearing rocks.
Alkane hosted a site visit to our core yard at Peak
Hill Gold Mine, paid for laboratory costs (A$15k)
and provided co-supervision and advice.
• University of New South Wales geology Honours
student (commenced January 2024) –
This project is looking at the sulphide chemistry of
the Tomingley deposits. Alkane is providing
co-supervision and advice and will pay for
laboratory costs (approx. A$15k) in FY25.
Investors
Alkane communicates openly with investors through
ASX Announcements and investor presentations
– all available on our website. Following major
announcements, Alkane’s Managing Director often
discusses the development with investment media
portals, Proactive, Crux Investor and Corporate
Storytime.
Managing Director Nic Earner (left) and Chairman Ian Gandel at the
Australian Gold Conference, August 2024.
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Contributions to the economy
Alkane practises safe and sustained economic
development for the long-term benefit of our
shareholders, employees, contractors, suppliers and
host communities.
Developing resilient regional
communities
Alkane supports the development of more resilient
regional communities through the establishment of
permanent infrastructure, sponsorship of local events
and organisations, provision of training and career
opportunities to local students and residents, and the
engagement of local suppliers and service providers.
Since 2014, when Tomingley Gold Operations
commenced production, Alkane has supported the
Tomingley and broader Narromine communities via
a planning agreement with Narromine Shire Council.
This provides funding for community projects (via the
Tomingley Community Fund), council environmental
projects and shire road works (separate from the
road realignments we will undertake as part of the
Tomingley Gold Extension Project).
In FY24, a total of $118,000 was awarded to a
number of different projects under the Tomingley
Community Fund (FY23 $84,900). Supported projects
and events included new infrastructure at the Trangie
Showground, the annual sponsorship of the Tomingley
Picnic Races (traditionally held in April), and funding
for the Narromine Business Collective to host a Rural
Women in Business Luncheon, Australian Skin Cancer
Foundation skin check truck visit, Dusty Boots music
festival and awards, new equipment for various
schools and sport clubs, festive season community
events, and the Narromine Hospital Auxiliary (see
page 56).
The Tomingley Gold Extension Project will see the
operation continue until at least 2032. This will
benefit the wider community in terms of continuation
of employment, workforce and supplier expenditure,
and community investment. The economic impact
assessment estimated that 50 percent of operation
costs over the life of the project are expected to be
spent within the local area and 80 percent within New
South Wales.
The Newell Highway through Tomingley
SUSTAINABILITY REPORT COMMUNITIES
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54
Sponsorships
Key Alkane economic contributions in FY24
Government
payments
$8M
(including $5.4M
in royalties)
Local council
payments
$0.7M
(rates and planning
agreement)
Suppliers
$203.5M
(63% NSW)
Community
sponsorships
$103.5k
$118k
Tomingley Community
Fund recipients
(comes out of council planning
agreement funds)
$16.7k
Events
(Community, education and
earth science gatherings)
$16k
Students
(including Geology
Honours students)
$70.8k
Organisations
(community NFPs, local papers,
earth science education)
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Over the past few years, one organisation that has benefited from the Tomingley
Community Fund is the Narromine Hospital Auxiliary – a volunteer-run charity that
raises money to purchase much-needed equipment for Narromine Health Services.
An annual fundraising program of street stalls, raffles and a trivia night has funded
items such as monitors, pressure-sensitive floor mats and toilet-commode chairs.
However, with many residents heading to the larger Dubbo Hospital some 40km away,
the auxiliary recognised they needed to somehow fund larger pieces of equipment to
help future-proof the hospital.
In 2021, the Narromine Hospital Auxiliary discovered they could apply for the
Tomingley Community Fund. They first applied for $5,000 towards a slit lamp for
dealing with eye injuries, which was at the top of the hospital wishlist. Today, the slit
lamp (pictured) is used to diagnose and treat a wide range of eye conditions – without
patients needing a trip to Dubbo.
The auxiliary was granted an additional $5,000 in 2022 and $15,000 in 2023 from the
Tomingley Community Fund towards other equipment on the wishlist, which include
infrastructure and equipment to upgrade the x-ray room, a concealment transport
trolley and a medical simulator.
Significantly, the flow-on effect of that first 2021 grant extends far beyond the dollars
and specific equipment: it has changed the ambition, community profile and energy of
the entire organisation.
The auxiliary’s hardworking volunteers feel energised by their ability to make more of
a difference. The organisation also has five new members and increased community
support at events. Its annual donor day (initially conceived to thank Alkane for the slit
lamp funding) now attracts significant donations from local businesses.
Alkane is proud to have played a part in enhancing the services offered by Narromine
Hospital for the benefit of the whole community. These outcomes align with our
commitment to building more resilient regional communities.
Narromine Hospital Auxiliary lifts its vision
Dr Andy at Narromine Health Services with the slit lamp
Alkane’s support of the Narromine
Hospital Auxiliary, via the Tomingley
Community Fund, has sparked a
new era for this local charity.
SUSTAINABILITY REPORT COMMUNITIES
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56
Aboriginal engagement and
cultural heritage
Alkane respects the traditions and culture of the
Aboriginal and Torres Strait Islander Peoples of
Australia. We ensure traditional custodians are
engaged and consulted on heritage and land access, as
per the codes and guidelines established by Heritage
New South Wales.
Our main operation at Tomingley lies on the traditional
lands of the Upper Bogan River clan group, who are
members of the Wiradjuri Nation. Today the operation
lies within the boundaries of the Peak Hill Local
Aboriginal Land Council (PHLALC).
An Aboriginal Cultural Heritage Management Plan
guides the management of Aboriginal heritage sites
identified within Alkane’s Mining Leases at Tomingley.
The plan was developed in close consultation with
several Wiradjuri Aboriginal stakeholder groups,
including PHLALC.
The Aboriginal Cultural Heritage Management Plan
has been reviewed and updated to cover the new
Mining Lease and disturbance footprint associated
with the Tomingley Gold Extension Project.
A total of 39 sites of Aboriginal heritage significance
were identified during the Environmental Impact
Assessment in 2021, of which 12 will be disturbed
by the project (see page 58). We will continue to
work with the local Aboriginal community to manage
disturbances and protect the balance.
Alkane has commenced conversations with local
Aboriginal community representatives of the Wellington
area, where the Boda-Kaiser Project is located.
Over several years, Alkane has developed a strong
relationship with the Clontarf Foundation’s Narromine
Academy. The Clontarf Foundation exists to improve
the education, discipline, life skills, self-esteem and
employment prospects of young Aboriginal and Torres
Strait Islander men. We were a major sponsor of the
foundation from 2020 to 2023 and recently entered
into a new three-year sponsorship.
Alkane also recently established ties with the
Wellington Yindyamarra Healing Men’s Group,
which is a yarning circle and drop-in centre founded
by Wiradjuri man, Jeffrey Amatto. We hired our
exploration rehabilitation contractor to assist with
clean-up efforts at the drop-in centre site (30 May 2024).
Clontarf students visited Alkane’s Peak Hill core yard in August 2024.
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In August 2023, representatives of Peak Hill Local Aboriginal Land Council (PHLALC)
visited Tomingley to discuss treatment of artefacts at 12 sites of Aboriginal heritage
significance that will be disturbed by the extension project. The broad approach,
determined from this consultation, is for disturbed artefacts to remain on country.
On 29 February 2024, an archaeologist from OzArk Environment & Heritage
recovered 12 Aboriginal artefacts from one of these sites – an open scatter that will be
disturbed by construction of the new highway. A representative of PHLALC attended
the salvage operation.
Per PHLALC wishes, the artefacts will be stored safely onsite until we can bury them
as close as possible to their original location to ensure they remain on country. The
timing of burial will depend on the project schedule, with the final location determined
in consultation with PHLALC.
We continue to consult with the Aboriginal community in relation to management
of the proposed disturbances. These actions are guided by the Aboriginal Cultural
Heritage Management Plan.
Main image: Representatives from PHLALC and Tomingley staff at one of the Aboriginal artefact scatters. (August 2023)
Inset: An OzArk archaeologist recovered Aboriginal artefacts from an open scatter on project land. (February 2024)
Recovery of Aboriginal artefacts
SUSTAINABILITY REPORT COMMUNITIES
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58
Stakeholder groups
How we engage
Shareholders and investors
Key topics
Employees and contractors
Government and regulators
(federal, state and local)
Mining and related industries
Host communities
Aboriginal and Torres Strait
Islander Peoples
NGOs and special interest groups
Landholders
Suppliers
• ASX announcements and quarterly reports
• Proactive interviews and investor briefings
• Video presentations
• Annual Report and Annual General Meeting
• Website
• Induction and training
• Meetings/briefings/toolboxes
• BBQ/pizza/food van days
• Internal social interactions (outside of work)
• Volunteer efforts
• Focus on residential employment
• Meetings, site visits, briefings
• NSW Minerals Council committees and
working groups (participation)
• Association of Mining and Exploration
Companies (participation)
• Water NSW Macquarie-Cudgegong
Customer Advisory Group (participation)
• Participation at industry forums
• Partnerships with educational institutions
• Sponsorship and participation with
Australian Earth Science Education
(AusEarthEd)
• Community Consultative Committee
(Tomingley)
• Community newsletters
• Direct engagement and briefings
• Investment in community infrastructure
• Sponsorship of community projects and
events
• Participation in community events
• Meetings, site visits, briefings
• Investment and partnerships
• Presentations and talks
• Meetings, contractual agreements
• Direct engagement and briefings
• Meetings, contractual agreements
• Local procurement where feasible
• Operating performance
• Exploration results
• Balance sheet
• Mineral Resources and Ore Reserves
• Sustainability performance
• Corporate governance
• Health and safety performance
• Monthly site performance
• COVID-19 management
• Employee and contractor recognition
• Employee share scheme
• Regulatory and legal compliance
• Environmental performance and
management
• Community investment
• Project approvals and licences
• Metalliferous mining advocacy and feedback
• Metalliferous mining advocacy
• Technical methodologies
• Environmental performance and
management
• Project development
• Social and economic impact
• Economic contributions
• Career opportunities
• Project development
• Culture and heritage management
• Project development
• Social and economic impact
• Land access and compensation
agreements
• Infrastructure improvements
• Project development
• Social and economic impact
• Health and safety requirements
• Modern slavery requirements
• Contract conditions
Summary of stakeholder engagement activities
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Environment
Alkane’s exploration, mining, processing and rehabilitation activities are
carefully designed to minimise our environmental footprint and enhance
biodiversity.
Environmental management
Alkane takes environmental stewardship seriously –
not simply as a legislative requirement, but as a
demonstration of integrity and the respect we have
for the land and our host communities. Environmental
responsibility is embedded into the design of our
activities and normal business practices.
Tomingley
At Tomingley Gold Operations, a comprehensive
Environmental Management Strategy (EMS) is
underpinned by a series of site-specific environmental
management plans available on our website.
We are making good progress on updating these to
incorporate the extension of operations to the San
Antonio and Roswell resources. These need to be
approved by the New South Wales Department of
Planning, Housing and Infrastructure (DPHI) prior to
starting development of the new open cut.
A dedicated Environmental Management team
undertakes regular monitoring of air, water, noise
and blasting to ensure site compliance with project
approvals, licences and permits. Annual environmental
reporting includes:
• Annual Review (NSW DPHI)
• Annual Return (NSW EPA)
• Annual Rehabilitation and Biodiversity Monitoring
Assessment Report (NSW DPHI)
• Annual Rehabilitation Forward Program & Report
(NSW Resources Regulator)
• National Pollutant Inventory Reporting (NPI)
• National Emissions and Energy Report (NGER)
SUSTAINABILITY REPORT ENVIRONMENT
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60
Air monitoring near Tomingley
Environmental performance in FY24
No noise, dust or vibration exceedances were
recorded at Tomingley during the reporting period,
and no complaints were received. There were zero
reportable incidents.
Details of Tomingley’s environmental performance can
be found on Alkane’s website.
Peak Hill Gold Mine
Although Peak Hill Gold Mine ceased operating in
2005 and the site is largely rehabilitated, it remains
an active mining lease. Environmental management
actions include waste management, minor soil
remediation works, pest animal and weed control,
monitoring and reporting.
Annual environmental reporting includes:
• Environmental Management Report (NSW DPHI,
Resources Regulator, Parkes Shire Council)
• Rehabilitation Management Forward Program
& Report
• Pollution Incident Response Plan.
Exploration
Alkane adheres to strict environmental protocols
during all exploration activities. For surface-disturbing
drilling campaigns, we complete a comprehensive
“review of environmental factors” (REF) report as part
of the approval process.
The REF evaluates potential impacts across categories
including air, water, soil and stability, noise and
vibration, hazardous substances, waste and emissions,
vegetation, threatened species, biodiversity, social,
Aboriginal heritage, and land use (agricultural) impacts.
In obtaining approval to undertake exploration
activities, Alkane commits to courses of action in
compliance with the information supplied.
For each drilling program, we are also required to
submit rehabilitation plans and later provide evidence
that the rehabilitation was successful.
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Alkane Resources Annual Report 2024
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No noise, dust or vibration
exceedances were recorded
at Tomingley during FY24.
Exploration at Boda-Kaiser
Water
Alkane recognises that water is a valuable resource
we share with our communities, including towns
and agricultural enterprises near our operations and
projects. Our activities are carefully designed to use
water responsibly and efficiently.
Our approach to water management at Tomingley
is comprehensively described in the site’s Water
Management Plan, which contains details of the
New South Wales regulatory environment and water
licences. The Water Management Plan has been
updated by an external consultant to incorporate the
Tomingley Gold Extension Project and has entered the
approval stage.
Water licences
The main water supply at Tomingley Gold Operations
is raw water from the Woodlands Borefield, piped
approximately 46 kilometres from east of Narromine.
The entitlement of 1000ML is sufficient for the site’s
net requirements, where water is primarily lost by
entrainment in processing residue.
To support the proposed increased throughput at
Tomingley, we have acquired a second, backup title deed
for 400ML from the Mid Macquarie Alluvial Aquifer (bore).
This licence is yet to be utilised and will require
infrastructure to be installed prior to accessing (if needed).
Caption
Tomingley bore water use consumption and efficiency
FY22
FY23
FY24
Total water drawn from bore (ML)
573
401
470
Per tonne of ore processed (L/t)
556
375
415
Per ounce of gold poured (L/oz)
8,577
5,709
8,214
Water management and consumption
Tomingley employs a range of measures to optimise
water management and minimise consumption of
clean (raw) water. For example, surface runoff due
to rainfall is contained in sediment ponds, then used
for dust suppression. The process water system
preferentially uses water from an internal recycling
circuit, with new bore water used to top up the
process water only as required. Water is recovered
and recycled multiple times before it evaporates out
of the process water system.
The table below shows bore water consumption and
efficiency at Tomingley over the past three years. In
FY24, the site drew below 50 percent of its 1000ML
entitlement.
The water management system at Tomingley includes
infrastructure (drains, dams, pumps and pipelines)
to manage clean, raw, dirty, mine and process
(contaminated) water. These systems are rigorously
maintained to protect the integrity of natural surface
and groundwater flows.
Alkane Resources Annual Report 2024
62
SUSTAINABILITY REPORT ENVIRONMENT
Water testing near Tomingley
Emissions and energy
Alkane acknowledges the need for the mining sector
to transition towards renewable energy sources and
reduce greenhouse gas (GHG) emissions to combat
climate change.
We are aware approvals of future project developments
are likely to require substantial commitments to
renewable energy solutions and continue to evaluate
the feasibility of renewable and low-emission power
sources for incorporation in our projects.
Tomingley continues to explore renewable energy
solutions to provide an effective proportion of the
power requirements for the Tomingley processing
plant and other site infrastructure. During FY24, a
fleet of new diesel/electric hybrid underground mining
equipment was ordered.
Tomingley Air Quality and Greenhouse
Gas Management Plan
Consent conditions for the Tomingley Gold Extension
Project require Tomingley to prepare an Air Quality
and Greenhouse Gas Management Plan that includes
measures taken to minimise Scope 1 and 2 GHG
emissions and improve energy efficiency. The plan will
be updated every three years to describe progress
and set goals around abating Scope 1 and 2 GHG
emissions.
During FY24, the Air Quality and Greenhouse Gas
Management Plan was prepared and supplied to the
New South Wales Environment Protection Authority
for consultation.
Emissions reporting
Alkane collates and reports annual GHG emissions
and energy consumption data for Tomingley Gold
Operations in line with the National Greenhouse and
Energy Reporting (NGER) scheme and the National
Pollutant Inventory (NPI).
• Scope 1 GHG emissions are predominantly
associated with the mining fleet.
• Scope 2 GHG emissions relate to electricity
purchased from the grid.
The estimated FY24 emissions and energy data reflect
a period of extensive construction associated with the
Tomingley Gold Extension Project.
Tomingley emissions and energy data
FY22
FY23
FY24
Greenhouse gas emissions
Total emissions
Scope 1 & Scope 2 (t CO2-e)
55,823
58,054
62,260*
GHG intensity (t CO2-e/oz)
0.83
0.83
1.09*
Energy
Total consumed (GJ)
375,626
421,507
447,728*
Energy intensity (GJ/oz)
5.62
6.00
7.83*
*FY24 data is estimated
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Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT ENVIRONMENT
New hybrid mining equipment arriving at Tomingley
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2024
64
Waste management and
recycling
Alkane takes care to manage the waste generated
by our operations responsibly and securely. Through
careful design, construction, and maintenance, we
preserve the structural integrity of our waste storage
facilities and ensure they are fit for purpose.
Wherever it is practical, we seek opportunities to
repurpose and recycle consumables to recapture key
materials and minimise our impact on landfill.
Waste rock management
Where practical, waste rock from underground mining
has been used for construction projects around the
site – such as construction of amenity bunds and
buttresses of the residue storage facility. The balance
was initially stored in two purpose-built waste rock
emplacements that have been rehabilitated.
In FY24, suitable waste material was used in the
construction of several civil works projects. Residual
waste rock was used to backfill the Caloma Two open
cut and underground voids.
Residue management
Processing residues at Tomingley are treated in a
cyanide destruction circuit, then stored in the site’s
purpose-built residue storage facilities (RSF).
RSF1 is a ‘High A’ consequence category upstream
dam with perimeter deposition. It is designed as a
non-release facility capable of storing a ‘probable
maximum precipitation’ event. Being nearly full, this
dam is on care and maintenance. It has undergone
extensive buttressing to maintain appropriate factors
of safety and further rehabilitation will be done at
end of mine life.
During FY24, we completed construction of RSF2
cell 1, which is now in operation. The second cell
was completed in the first quarter of FY25. RSF2 is a
‘Significant’ consequence category dam, following a
centreline lift methodology with perimeter deposition.
It is a non-release facility with emergency spillways.
Both RSFs are designed and constructed according
to ANCOLD guidelines and Dams Safety NSW
Regulations. They are operated according to the
site’s compressive Dam Safety Management Plan,
which incorporates an ‘operations, maintenance and
surveillance’ manual and an emergency response plan.
Caption
Recycling
Tomingley utilises several waste management
contractors to collect and recycle consumables such
as metal (used in large quantities underground), tyres,
machine oil and general waste/recycling. During FY24,
Tomingley engaged a new contractor to sort through
a build-up of scrap metal entrained in underground
waste rock on the ROM pad and other bulk scrap metal.
Tomingley recycling FY24:
• Waste material not recycled (general waste,
construction and maintenance scrap etc) 328,044kg
• Waste material recycled (tyres, oil, metal,
cardboard, plastic etc) 367,198kg
NOTE: Waste numbers are above average due to extensive construction during
FY24. Recycled material is also above average due to scrap metal clean-up
campaign (additional 200,000kg being recycled).
Processing residue storage facility
Rehabilitation and land
management
Alkane abates the impact of our operations to
the landscape through sensitive project design,
progressive rehabilitation, and sustainable farming
practices. We aim to minimise our footprint and
improve the productivity of residual agricultural lands
that are not disturbed.
Rehabilitation of mine sites
We understand the importance of returning sites
to stable and productive ecosystems once mining is
finished. At Peak Hill Gold Mine, where operations
ceased in 2005, the rehabilitated site is enjoying the
natural regeneration of trees and shrubs. Landscape
function analyses across parts of the mining lease
indicate the site is in better condition than when
mining commenced.
To meet new government requirements, Alkane
proposes to remediate an area (less than 10,000
square metres) of scalds on the final landforms at
Peak Hill Gold Mine (heap leach and waste rock
emplacement) during FY25.
Alkane undertakes progressive rehabilitation of our
disturbances at Tomingley Gold Operations – and will
continue this practice when mining is extended to
new resources nearby. The two original waste rock
emplacements at Tomingley have been rehabilitated.
High levels of rainfall in recent years have generated
good vegetation growth, including acacias and
eucalypts.
Rehabilitated waste rock emplacement at Tomingley
Rehabilitation management plans and reports
All rehabilitated landforms continue to be monitored
and the required reports prepared for government
departments. Where applicable, the reports are also
available on Alkane’s website.
For each of Tomingley and Peak Hill (required by the
NSW Resources Regulator):
• Rehabilitation Management Plan
• Rehabilitation Forward Program (Annual – rolling
plan for next three years)
• Rehabilitation Management Report (Annual –
measures actions of forward program)
Required by the NSW Department of Planning,
Housing and Infrastructure:
• Tomingley Rehabilitation and Biodiversity
Monitoring Assessment report (Annual)
• Peak Hill Environmental Management Report
(Annual)
Rehabilitation of exploration prospects
Alkane’s exploration team also rehabilitates the land
disturbed by drilling activities. This is managed via
a rehabilitation plan created with the input of the
landowner, with all stages carefully documented. Once
rehabilitation of an exploration site is completed, we
submit a report to the NSW Department of Planning,
Housing and Infrastructure.
Alkane uses an inhouse mobile app to streamline
management and documentation of our rehabilitation
activities. Sites are rehabilitated progressively, as
permitted by weather.
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Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT ENVIRONMENT
In FY24, Tomingley established a long-term Geotechnical Stability and Erosion
Trial (GSET) within the wall of the new northern ramp that provides access to the
underground mine (per the consent conditions for this project).
The purpose of the trial is to learn more about feasible strategies for managing erosion
and geotechnical stability for the conditions at Tomingley, with a focus on post-mining
long-term landforms. The results will guide potential treatments for the Wyoming One
open cut and the future San Antonio and Roswell (SAR) open cut, in close consultation
with government bodies.
Seven trial beds have been established on the eastern side of the ramp for the
purpose of:
• Comparing the erosion performance of different surface treatments (topsoil and
revegetation, soil/rock mulch and revegetation, fresh waste rock, no treatment).
• Monitoring the geotechnical performance of different batter slope angles (20
and 40 degrees) within the alluvium materials (naturally occurring clays, sand and
gravel) hosting the ramp.
The trial will also monitor the erosion performance of existing sections of the
Wyoming One open cut.
Geotechnical Stability and Erosion Trial
New northern ramp at Tomingley
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2024
66
Integrated mining and agriculture
Over the past few years, the properties Alkane
acquired for the Tomingley Gold Extension Project
have been managed by our agricultural partner, Toongi
Pastoral Company (TPC). TPC is a sustainable farming
enterprise founded by Alkane in 2016 to manage
the agricultural land associated with the polymetallic
Dubbo Project (now owned by our former subsidiary,
Australian Strategic Materials).
Land Management Plan
TPC developed a Land Management Plan for all the
lands associated with the project, spanning their use
before, during and after mining.
The plan encompasses:
• Agricultural land outside the mining lease, where the
focus will be enhancing agricultural productivity
• Allocated revegetation zones, where we will focus
on enhancing the biodiversity of flora and fauna
• Land that will be rehabilitated after mining has
finished and returned to agricultural productivity
• Land that will be rehabilitated and not returned
to agriculture (open cut voids and waste rock
emplacements), and
• Land that will be used for construction of new roads.
Now construction of the project is underway, TPC has
‘handed over’ some of the paddocks that fall within
the mining lease, including the lands where the paste
plant is being built and the designated vehicle and
pipeline corridor. TPC will also relinquish the land
designated for construction of the new section of
Newell Highway, which lies on the western side of the
current highway, outside the mining lease.
Exclusion zones of up to 300 metres will be
established between fenced-off farming lands and
the operations areas, which will have separate high-
security fences. The land in these exclusion zones will
be left to rest for the foreseeable future.
Enhancing agricultural productivity
Alkane has committed to improving the overall land
and soil capability of the agricultural land that will not
be disturbed by the Tomingley Gold Extension Project
(approximately 1450 hectares). This will yield a net
gain in long-term agricultural productivity to offset
the land that will be either temporarily or permanently
removed from agricultural production.
To achieve this, TPC aims to establish a profitable mixed
agricultural enterprise that demonstrates leading
practice sustainable farming technologies – including
genetics, soil and pasture management, pest and weed
management, and carbon sequestration solutions.
The goal is to increase the carrying capacity by
approximately five percent per year to improve the
average agricultural carrying capacity of approximately
3.1 dry sheep equivalent (DSE) to approximately
6.0DSE by 2035.
During FY24, TPC progressed a series of fencing
projects to assist with stock movement and crop
rotation – as well as excluding stock from established
buffer zones and designated revegetation areas.
The consolidated property currently supports around
30 rams and 2000 ewes, on either spring or autumn
lambing cycles, and cattle (depending on feed
availability) for growing out. Approximately
500 hectares are on rotation for sowing with grain
and forage crops.
Ewes and lambs in Tomingley paddocks
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Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT ENVIRONMENT
Upon establishment of Tomingley Gold Operations in 2014, our team planted screens
of Australian native Bimble Box (Eucalyptus populnea) and Inland Grey Box (Eucalyptus
microcarpa), both indigenous to the region.
Then & now
September 2014
August 2024
Ten years later, these trees have flourished into a beautiful woodland area that
provides habitat for birds, native mammals and reptiles. There has also been natural
recruitment of local understory species.
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2024
68
Biodiversity
Alkane works hard to protect and nurture the wide
variety of native species that live in and around
our projects. Through careful management of
rehabilitation and biodiversity offset areas, we aim to
restore wildlife habitats and enhance native flora and
fauna populations.
Peak Hill
At Peak Hill Gold Mine, our rehabilitation efforts
have resulted in an increasingly species-rich site,
with several native and woodland bird and mammal
species, not present pre-mining, now thriving. The
original tree plantings from 1996 are now around
20 metres tall. They have led to natural regeneration
of the woodland species on site.
Tomingley biodiversity monitoring
The annual Tomingley Rehabilitation and Biodiversity
Monitoring Assessment report measures and
compares the ecological recovery of conservation
and mine rehabilitation areas at Tomingley against
reference sites (remnant woodland and native
grasslands). This report is submitted to the NSW
Department of Planning, Housing and Infrastructure in
October each year.
A biannual fauna monitoring report is also prepared
by external ecological consultants with data obtained
from an extensive field assessment program. This
report guides the ongoing management of native
fauna around the Tomingley operations, with the most
recent assessment and report being completed in
March 2024.
Biodiversity offsets
For the original mining lease at Tomingley, designated
biodiversity offset areas totalling 157 hectares are
protected in-perpetuity by a binding Conservation
Property Vegetation Plan, signed in agreement
with Central West Local Land Services. These areas
comprise a mix of native grassy woodlands being
conserved (80Ha) and extensions to these woodlands
through ameliorative revegetation (77Ha). Ongoing
management activities include revegetation (endemic
trees, shrubs, herbs and grasses), weed control, feral
animal control and protection of native species from
introduced predators.
Alkane obtained an additional mining lease in July
2023 for the Tomingley Gold Extension Project.
Approximately 78 hectares will be disturbed by this
extension to operations, mostly cleared agricultural
land with isolated paddock trees. With no significant
habitat to be cleared, we will offset the small
biodiversity impacts in accordance with the NSW
Government’s requirements, as per the consent
conditions for the project. This will include paying
into the New South Wales Biodiversity Conservation
Trust, as well as establishing 283 hectares of new
biodiversity offset areas that will be protected by new
in-perpetuity biodiversity stewardship agreements
(see page 70).
All the biodiversity activities associated with the
extension project will be included in Tomingley’s
updated Biodiversity Management Plan and Annual
Rehabilitation and Biodiversity Monitoring Assessment
Report, as well as other relevant documentation.
Wallaroos at rehabilitated Peak Hill Gold Mine
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Alkane Resources Annual Report 2024
SUSTAINABILITY REPORT ENVIRONMENT
Several types of native New South Wales grassy woodlands once existed in the area
around Tomingley. Due to widespread grazing and agricultural development since the
1850s, these plant communities have become scarce and highly fragmented and are
now considered threatened or endangered ecological communities.
To offset the disturbance of some of these plant communities by the Tomingley
Gold Extension Project, Alkane intends to establish 283 hectares of protected
conservation areas. Some 16 individual areas comprising ideal conditions and/or
existing plant communities will be fenced off to protect them from grazing. Existing
plant communities will be monitored for natural regeneration, and some areas will be
revegetated with endemic trees, shrubs, herbs and grasses.
A major focus will be restoring open Fuzzy Box (Eucalyptus conica) woodlands.
Endemic to eastern Australia, Fuzzy Box is a locally uncommon species and classified
as a Threatened Ecological Community. From the residual land outside the mining
lease and highway realignment project, we’ve allocated several areas and soil types
(totalling 123.3Ha) that provide ideal growing conditions for Fuzzy Box, including the
riparian zones along Gundong and Bulldog Creeks.
As Fuzzy Box seedlings are difficult to source, Alkane engaged local forestry seedling
specialist, Narromine Transplants, to propagate 2,000 seedlings from seed collected
from our existing trees. We planted 1,445 Fuzzy Box seedlings in August 2024.
Alkane also intends to restore and protect several Western Grey Box (Eucalyptus
microcarpa) and Belah (Casuarina cristata) woodland areas, totalling approximately
160 hectares.
Restoring native grassy woodlands
Planting Fuzzy Box seedlings (August 2024)
SUSTAINABILITY REPORT ENVIRONMENT
Alkane Resources Annual Report 2024
70
FINANCIAL
REPORT
71
Alkane Resources Annual Report 2024
Directors’ Report
The directors present their report, together with the financial statements, on
the consolidated entity (referred to hereafter as the ‘consolidated entity’ or
the ‘group’) consisting of Alkane Resources Ltd (referred to hereafter as the
‘company’ or ‘parent entity’) and the entities it controlled at the end of, or
during, the year ended 30 June 2024.
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FINANCIAL REPORT DIRECTORS’ REPORT
Directors
The following persons were directors of Alkane Resources Ltd (Alkane) during the whole of the financial year and up
to the date of this report, unless otherwise stated:
I J Gandel
N P Earner
D I Chalmers
A D Lethlean
G M Smith
The Board continues its efforts to seek to appoint additional independent members who will bring complementary
skill sets and diversity to the group’s leadership.
Information on Directors and Company Secretaries
Ian Jeffrey Gandel – Non-Executive Chairman
LLB, BEc, FCPA, FAICD
Appointed Director 24 July 2006 and Chairman 1 September 2017.
Mr Gandel is a successful Melbourne-based businessman with extensive experience in retail management and retail
property. He has been a director of the Gandel Retail Trust and has had an involvement in the construction and
leasing of Gandel shopping centres. He has previously been involved in the Priceline retail chain and the CEO chain
of serviced offices.
Mr Gandel has been an investor in the mining industry since 1994. Mr Gandel is currently a substantial holder
in a number of publicly listed Australian companies and, through his private investment vehicles, now holds
and explores tenements in his own right in Western Australia and South Australia. Mr Gandel is currently an
executive chairman of Alliance Resources Pty Ltd (appointed as a director on 15 October 2003 and in June 2016
was appointed non-executive chairman). Mr Gandel is currently non-executive chairman of Australian Strategic
Materials Limited.
Mr Gandel is a member of the Audit, Remuneration and Nomination Committees.
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FINANCIAL REPORT DIRECTORS’ REPORT
Nicholas Paul Earner – Managing Director
BEng (Hons)
Appointed Managing Director 1 September 2017.
Mr Earner is a chemical engineer and a graduate of the University of Queensland with 30 years’ experience in
technical and operational optimisation and management and has held a number of executive roles in mining and
processing.
Mr Earner joined Alkane Resources Ltd as Chief Operations Officer in August 2013 with responsibility for the safe
and efficient management of the company’s operations at Tomingley Gold Operations (Tomingley) and Dubbo
(Dubbo Project). During Mr Earner’s time as Managing Director, the Dubbo Project has been de-merged into the
separately listed Australian Strategic Materials, Tomingley has had its mine life extension approved by the NSW
government, and the Boda-Kaiser Project has gone from discovery to scoping study.
Mr Earner is currently a non-executive director of Australian Strategic Materials Ltd (appointed 1 September 2017).
Mr Earner has been a director of Genesis Minerals Limited in the last three years (resigned 19 November 2021).
Mr Earner is a member of the Risk Committee.
David Ian Chalmers – Technical Director
MSc, FAusIMM, FAIG, FIMM, FSEG, MSGA, MGSA, FAICD
Appointed Technical Director 1 September 2017. Resigned as Managing Director 31 August 2017.
Mr Chalmers is a geologist and graduate of the Western Australia Institute of Technology (Curtin University) and has
a Master of Science degree from the University of Leicester in the United Kingdom. He has worked in the mining
and exploration industry for over 50 years, during which time he has had experience in all facets of exploration and
mining through feasibility and development to the production phase. Mr Chalmers was Technical Director of Alkane
until his appointment as Managing Director in 2006, overseeing the group’s minerals exploration efforts. During his
time as chief executive he steered Alkane through the discovery, feasibility, construction and development of the
now fully operational Tomingley Gold Operations; the discovery and ultimate sale of the McPhillamys gold deposit;
the evaluation, recovery flowsheet, marketing and feasibility for the Dubbo Project (rare metals and rare earths),
advancing the project towards development; and the recent discovery of the gold deposits immediately south of
Tomingley and the porphyry gold-copper discovery at Boda.
Mr Chalmers is a member of the Nomination Committee. He is a director of the Toronto-based Critical Minerals
Institute.
Anthony Dean Lethlean – Non-Executive Director
BAppSc (Geology)
Appointed Director 30 May 2002.
Mr Lethlean is a geologist with over ten years’ mining experience, including four years underground on the Golden
Mile in Kalgoorlie. In later years, he has worked as a resource analyst with various stockbrokers and investment
banks including CIBC World Markets. He was a founding director of Helmsec Global Capital Limited, which seeded,
listed and funded a number of companies in a range of commodities. He retired from the Helmsec group in 2014.
He is also a director of corporate advisory Rawson Lewis.
Mr Lethlean is the senior independent Director, Chair of the Audit and Risk Committees, and a member of the
Remuneration and Nomination Committees.
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FINANCIAL REPORT DIRECTORS’ REPORT
Gavin Murray Smith – Non-Executive Director
B.Com, MBA, MAICD
Appointed Director 29 November 2017.
Mr Smith is an accomplished senior executive and non-executive director within multinational business
environments. He has more than 35 years’ experience in Information Technology, Business Development, and
General Management in a wide range of industries and sectors. Mr Smith has worked for the Bosch group for the
past 34 years in Australia and Germany and is current chair and president of Robert Bosch Australia. In this role,
Mr Smith has led the restructuring and transformation of the local Bosch subsidiary. Concurrent with this role, he
is a non-executive director of the various Bosch subsidiaries, joint ventures, and direct investment companies in
Australia and New Zealand. Mr Smith is currently a non-executive director of Australian Strategic Materials Ltd.
Mr Smith is a member of the Audit and Risk Committees and Chair of the Remuneration and Nomination
Committees.
Dennis Wilkins – Joint Company Secretary
Appointed Company Secretary 29 March 2018.
Mr Wilkins is the founder and principal of DWCorporate Pty Ltd, a corporate advisory firm servicing the natural
resources industry.
Since 1994, he has been a director, and involved in the executive management, of many publicly listed resource
companies with operations in Australia, PNG, Scandinavia and Africa. Mr Wilkins is the principal of DWCorporate
Pty Ltd, where he advises on governance, compliance and corporate secretarial matters to companies in the
Australian resources sector. Mr Wilkins is currently a director of Key Petroleum Limited.
James Carter – Joint Company Secretary
Appointed Company Secretary 20 May 2020.
Mr Carter is a CPA and Chartered Company Secretary with over 25 years’ international experience in the resources
industry. He has held senior finance positions across listed resources companies since 2001.
Principal activities
During the financial year the principal activities of the consolidated entity consisted of:
• mining operations at Tomingley Gold Operations
• construction and commercial production of the Tomingley Gold Extension Project
• exploration and evaluation activities on tenements held by the group; and
• pursuing strategic investments in gold exploration companies.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
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Alkane Resources Annual Report 2024
FINANCIAL REPORT DIRECTORS’ REPORT
Result for the year
The profit for the consolidated entity, after providing for income tax, amounted to $17,677,000 (30 June 2023:
$42,450,000).
This result included a profit before tax of $37,544,000 (30 June 2023: $71,157,000) in relation to Tomingley Gold
Operations.
Review of operations
Tomingley Gold Operations
Tomingley Gold Operations (TGO) is a wholly owned subsidiary of Alkane, located near the village of Tomingley,
approximately 50km southwest of Dubbo in Central West New South Wales. Tomingley has been operating since
2014. Mining is based on four gold deposits (Wyoming One, Caloma One, Caloma Two and Roswell).
TGO produced 57,217oz, which was within updated production guidance (55,000oz to 58,000oz). AISC of
A$2,137/oz beat updated guidance (A$2,150 to $2,350/oz). FY2024 full year production was below the original
guidance (60,000oz to 65,000oz). The main reasons were the mining of stopes in Caloma Two, which had lower
than predicted recovery due to the presence of preg-robbing carbonaceous material and the Roswell ramp up not
being sufficiently rapid to allow the original guidance to be met.
Gold recovery of 78.4% for the period was below expectations (2023: 84.3%). Average grade milled decreased to
2.00g/t in the current year (2023: 2.42g/t).
Production for the period was 57,217 ounces of gold (2023: 70,253 ounces of gold) with all in sustaining costs of
$2,137 per ounce (2023: $1,602 per ounce). The average sales price achieved for the year increased to $3,004 per
ounce (2023: $2,703 per ounce). Gold sales of 57,592 ounces (2023: 70,498 ounces) resulted in sales revenue of
$172,991,000 (2023: $190,527,000).
Bullion on hand decreased by 390 ounces from 30 June 2023 to 2,500 ounces (fair value of $8,700,000 at year end).
The main drivers to the change in profit year on year have been the higher operating costs due to increased activities,
higher input costs, and lower grade and recovery achieved. The higher metal prices were offset by lower quantities sold.
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Alkane Resources Annual Report 2024
FINANCIAL REPORT DIRECTORS’ REPORT
TGO Production
Unit
September
Quarter
2023
December
Quarter
2023
March
Quarter
2024
June
Quarter
2024
FY
2024
FY
2023
Underground
Ore mined
tonnes
241,591
277,547
230,694
297,203
1,047,035
822,585
Grade
g/t
2.12
1.88
1.82
2.49
2.10
2.50
Ore Milled
tonnes
276,654
287,550
296,644
271,690
1,132,538
1,069,331
Head Grade
g/t
2.10
1.84
1.69
2.41
2.00
2.42
Gold Recovery
%
81.9
77.9
67.6
84.1
78.4
84.3
Gold poured(3)
ounces
15,855
13,182
10,861
17,319
57,217
70,253
Revenue summary
Gold sold
ounces
16,090
14,507
10,385
16,610
57,592
70,498
Average price realised
A$/oz
2,897
2,926
2,933
3,219
3,004
2,703
Gold revenue
A$M
46.6
42.4
30.5
53.5
173.0
190.5
Cost summary
Surface works
A$/oz
30
29
53
26
33
134
Underground mining
A$/oz
682
771
860
902
800
461
Processing
A$/oz
435
444
750
469
504
388
Site support
A$/oz
175
220
289
168
204
141
C1 Cash Cost(1)
A$/oz
1,322
1,464
1,952
1,565
1,541
1,124
Royalties
A$/oz
93
82
85
112
94
93
Sustaining capital
A$/oz
429
508
340
319
401
364
Gold in circuit movement
A$/oz
223
51
(36)
(186)
15
(49)
Rehabilitation
A$/oz
32
29
16
2
20
22
Corporate
A$/oz
57
66
96
55
66
47
All in Sustaining Cost(1)
A$/oz
2,156
2,200
2,453
1,867
2,137
1,601
Bullion on hand
ounces
2,651
1,322
1,796
2,500
2,500
2,890
Stockpiles
Ore for immediate milling
tonnes
289,287
281,701
215,751
241,179
241,179
328,594
Stockpile grade(2)
g/t
0.94
0.95
0.86
1.13
1.13
1.04
Contained gold
ounces
8,757
8,621
5,975
8,776
8,776
10,940
(1) All in Sustaining Cost (AISC) comprises all site operating costs, royalties, mine exploration, sustaining capex, sustaining mine development and an allocation of corporate
costs on the basis of ounces sold. AISC does not include share‐based payments, production incentives or net realisable value provision for product inventory.
(2) Based on the resource models.
(3) Represents gold sold at site, not adjusted for refining adjustments which results in minor differences between the movements in bullion on hand and the difference between
production and sales.
The table below summarises the key operational information:
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Alkane Resources Annual Report 2024
FINANCIAL REPORT DIRECTORS’ REPORT
Tomingley Gold Extension Project
The Tomingley Gold Extension Project was granted the mining lease (ML1858) in July 2023. In April 2024, Alkane
announced that Roswell has transitioned from ore development to production stoping.
As part of the five-year plan announced 24 June 2024, production is expected to increase from 55,000oz in FY24
to 100,000 – 110,000oz in FY29, through underground operations and the commencement of open cut mining in
FY27 – FY29. The expected AISC for the five years will be A$1,900 – $2,100/oz.
Structural works for the paste plant are largely complete with work commencing on the electrical installation.
The paste plant is expected to be commissioned in Q4 2024. Structural work at the process plant flotation and fine
grinding circuit is nearing completion. The circuit is expected to be commissioned in Q4 2024. The first of the new
CAT 2900XE underground loaders has arrived on site. The remaining three units are expected to be delivered in
Q3 2024.
Exploration
The extensive exploration program focused on the immediate area to the south of the TGO mine has continued
as part of the plan to source additional ore feed, either at surface or underground.
Full results for regional aircore, reverse-circulation and diamond core exploration drilling of several targets within
and adjacent to the Tomingley to Peak Hill corridor have yet to be received. This data will be compiled into a
summary expected to be released in the September quarter.
Northern Molong Porphyry Project (gold-copper)
The drilling program at the Northern Molong Porphyry Project (NMPP) extends over three kilometres from Kaiser
to Boda, down to Boda Two and Boda Three. Revised Indicated and Inferred Resource estimates for Boda and
Kaiser were released during the year. The Boda-Kaiser development scoping study was announced on 10 July 2024
and had a 17-year life-of-mine based on a 20 million tonnes per annum scenario.
The project is located in Central West NSW at the northern end of the Molong Volcanic Belt of the Macquarie Arc
and is considered highly prospective for large scale porphyry and epithermal gold-copper deposits.
Exploration in the NMPP has identified seven discrete intrusive complexes – Kaiser, Boda, Boda South, Driell
Creek, Murga, Windora and Thompkins – outboard of the major 35km2 Comobella Intrusive Complex and within
a northwest-trending transverse corridor. The corridor is defined by intermediate intrusive, lavas and breccias,
extensive alteration and widespread, low-grade, gold-copper mineralisation. Drilling continues to improve the
confidence of the Boda and Kaiser deposits and to test mineralised zones outside the defined resource envelopes.
Planned exploration over the next 12 months comprises work on growing the understanding of the regional
geological setting of the Boda-Kaiser District to aid the discovery of new gold-copper porphyry deposits. Baseline
environmental studies are underway for the Boda-Kaiser deposits in parallel with scoping studies to progress
development of the Boda-Kaiser deposits.
Corporate
In accordance with the strategy of investing part of its cash balance in junior gold mining companies and projects
that meet its investment criteria and the needs of the business, the company sold Genesis Minerals Ltd (ASX:GMD)
during the period for proceeds of $13.04M.
During the period, Calidus Resources Ltd (ASX:CAI) entered voluntary administration and was written down to $nil
(cost $19.8M).
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FINANCIAL REPORT DIRECTORS’ REPORT
Material business risks
The material business risks for the group include:
Mineral Resource and Ore Reserve Estimates
Mineral Resource and Ore Reserve estimates are expressions of judgement based on knowledge, experience, and
industry practice, and no assurances can be given that the Mineral Resource and Ore Reserve estimates and the
underlying assumptions will be realised. Estimates, which were valid when originally calculated, may alter when new
information or techniques become available.
In addition, by their very nature, Mineral Resource and Ore Reserve estimates are imprecise and depend to some
extent on interpretations, which may prove to be inaccurate. As further information becomes available through
additional fieldwork and analysis, the Mineral Resource and Ore Reserve estimates may change.
Actual mineralisation of ore bodies may differ from those predicted, and any material variation in the estimated
Ore Reserves may have a material adverse effect impact on the group’s results of operations, financial condition,
and prospects.
Production, cost and capital estimates
The group prepares estimates of future production, operating costs and capital expenditure relating to production
at its operations. No assurance can be given that such estimates will be achieved. Failure to achieve production
or cost estimates or material increases in costs could have an adverse impact on the group’s future cash flows,
profitability, results of operations and financial condition.
The group’s actual production and costs may vary from the estimates due to a variety of reasons including variances
in actual ore mined due to varying estimates of grade, tonnage, dilution, metallurgical and other characteristics;
revision of mine plans; changing ground conditions; labour availability and costs; diesel costs; and general
inflationary pressures being felt across the industry.
The development of estimates is managed by the group using a rigorous budgeting and forecasting process.
Operating risks
The group’s mining operations are subject to all the hazards and risks normally encountered in the exploration,
development, and production of gold that could result in decreased production, increased costs and reduced
revenues. The operation may be affected by equipment failure, toxic chemical leakage, labour disruptions and
availability, residue and tailings dam failures, rain and seismic events which may result in environmental pollution
and consequent liability. The impact of these events could lead to disruptions in production and scheduling,
increased costs and loss of facilities, which may have a material adverse impact on the group’s results.
To manage this risk, Alkane seeks to attract and retain high calibre employees and implement suitable systems
and processes to ensure production targets are achieved.
Exploration risks
An ability to sustain or increase the current level of production in the longer term is in part dependent on the
success of the group’s exploration activities. Exploration is a high-risk activity that requires large amounts of
expenditure over extended periods of time. Few properties that are explored subsequently have economic deposits
of gold identified, and even fewer are ultimately developed into producing mines.
Conclusions drawn during exploration and development are subject to the uncertainties associated with all
sampling techniques and to the risk of incorrect interpretation of geological, geochemical, geophysical, drilling
and other data.
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Gold prices
Revenues and cashflows are exposed to fluctuations in the Australian dollar gold price. Volatility in the gold price
creates revenue uncertainty and requires careful management of business performance to ensure that operating
cash margins are maintained. Declining gold price can also impact operations by requiring a reassessment of the
feasibility of a particular exploration or development project which would cause delays and potentially have a
material adverse effect on results of operations and financial conditions forward contracts.
Taxation
The gold mining industry is subject to a number of government taxes, royalties and charges. Changes to the rates
of taxes, royalties and charges can impact the profitability of the group.
Community relations
Community relations is about people connecting with people. Maintaining trusted relationships with our local
community stakeholders throughout the entire mining cycle is an essential part of securing and maintaining our
social licences to operate.
The group recognises that a failure to appropriately manage local community stakeholder expectations may lead
to dissatisfaction which has the potential to disrupt production and exploration activities.
Cyber security risks
The company has an Information Systems Standard and other information security policies and procedures in
place to ensure secure and reliable operations of all information systems. It is regularly audited based on accepted
information security standards from the Australian Signals Directorate (ASD) and National Institute of Standards
and Technology (NIST).
The company’s information security training and compliance program includes training during onboarding, quarterly
training refreshers, and anti-phishing simulations throughout the year for all employees. The company also has
active detection and response systems in place to mitigate any potential breaches that may try to circumvent the
boundary security controls. This addresses threat and vulnerability management from a cyber security perspective.
The company has experienced no material information security breaches. The group Information Systems
Manager tracks all cyber risks and reports to the Board on information security matters, and to the Audit and Risk
Committees.
Government regulation
The group’s mining, processing, development and exploration activities are subject to various laws and statutory
regulations governing prospecting, development, production, taxes, royalty payments, labour standards and
occupational health, mine safety, toxic substances, land use, water use, communications, land claims of local people
and other matters.
No assurance can be given that new laws, rules and regulations will not be enacted or that existing laws, rules and
regulations will not be applied in a manner which could have an adverse effect on the group’s financial position
and results of operations. Any such amendments to current laws, regulations and permits governing operations
and activities of mining and exploration, or more stringent implementation thereof, could have a material adverse
impact on the group.
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Debt and hedging covenants
The company has entered into agreements with financiers and hedge providers that contain various undertakings
and financial covenants. Non-compliance with the undertakings and covenants contained in these agreements
could lead to a default event resulting in the debt becoming due and payable with potentially adverse effects on the
financial position of the company. Management continually monitors for compliance with the required undertakings
and covenants.
Government policy and permits
In the ordinary course of business, mining companies are required to seek government permits for exploration,
expansion of existing operations or for the commencement of new operations. The duration and success of
permitting efforts are contingent upon many variables not within the controls of the company. There can be no
assurance that all necessary permits will be obtained, and, if obtained, that the costs involved will not exceed those
estimated by the company.
Climate-related risks
Alkane recognises that climate change poses a key environmental and social risk to our business, and the markets
in which the company operates in. The highest-priority climate-related risks include reduced water availability,
extreme weather events, changes in legislation and regulation, reputational risk, and technological and market
changes.
While Alkane proposes to comply with applicable laws and regulations and conduct its programs in a responsible
manner regarding the environment, there is the risk that Alkane may incur liability for any breaches of these laws
and regulations.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly
affect, the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of
affairs in future financial years.
Likely developments and expected results of operations
The group intends to continue efforts at TGO to be focused on continued safe operation of the underground mine
and exploration, evaluation and project approval of several of its other tenements to secure additional ore feed.
Exploration and evaluation activities will continue on existing tenements, and opportunities to expand the group's
tenement portfolio will be pursued with a view to ensuring there is a pipeline of development opportunities for
consideration.
Refer to the Review of Operations for further detail on planned developments.
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Environmental regulation
The group is subject to significant environmental regulation in respect of its exploration and evaluation,
development and mining activities.
The group aspires to the highest standards of environmental management and insists its staff and contractors
maintain that standard. A significant environmental incident is considered to be one that causes a major impact or
impacts to land biodiversity, ecosystem services, water resources or air, with effects lasting greater than one year.
There were no significant environmental incidents reported at any of the group’s operations.
Meetings of directors
The number of meetings of the company’s Board of Directors (‘the Board’) and of each board committee held during
the year ended 30 June 2024, and the number of meetings attended by each director were:
Meetings of directors
Audit Committee
Risk Committee
Remuneration and
Nomination Committees
Attended
Held
Attended
Held
Attended
Held
Attended
Held
I J Gandel
12
12
3
3
1*
1
1
1
A D Lethlean
11
12
3
3
1
1
1
1
D I Chalmers
12
12
3*
3
1*
1
1*
1
G Smith
12
12
3
3
1
1
1
1
N Earner
12
12
3*
3
1
1
1*
1
Held: represents the number of meetings held during the time the director held office or was a member of the committee during the year.
* Not a member of this committee. Non-members may attend the relevant committee meetings by invitation.
Remuneration report
The directors are pleased to present Alkane Resources Ltd’s remuneration report, which sets out remuneration
information for the company’s Non-Executive Directors, Executive Directors and other Key Management
Personnel (‘KMP’).
The report contains the following sections:
(a)
Key Management Personnel (‘KMP’) disclosed in this report
(b)
Remuneration governance
(c)
Use of remuneration consultants
(d)
Executive remuneration policy and framework
(e)
Statutory performance indicators
(f)
Non-Executive Director remuneration policy
(g)
Voting and comments made at the company’s 2023 Annual General Meeting
(h)
Details of remuneration
(i)
Service agreements
(j)
Details of share-based payments and performance against key metrics
(k)
Shareholdings and share rights held by Key Management Personnel
(l)
Other transactions with Key Management Personnel
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(a) Key Management Personnel (‘KMP’) disclosed in this report
Non-Executive Directors
I J Gandel
G Smith
A D Lethlean
Executive Directors
D I Chalmers
N P Earner
Other Key Management Personnel
J Carter
Chief Financial Officer/ Joint Company Secretary
S Parsons
Executive General Manager – Operations
(b) Remuneration governance
The company has established a Remuneration Committee to assist the Board in fulfilling its corporate governance
responsibilities with respect to remuneration by reviewing and making appropriate recommendations to the Board on:
• the overall remuneration strategy and framework for the company;
• the operation of the incentive plans which apply to the executive team, including the appropriateness
of key performance indicators and performance hurdles; and
• the assessment of performance and remuneration of the Executive Directors, Non-Executive Directors
and other Key Management Personnel.
The Remuneration Committee is a committee of the Board and at the date of this report the members were
I J Gandel, A D Lethlean and G M Smith, all of whom were non-executive (with Mr Smith and Mr Lethlean being
independent).
Their objective is to ensure that remuneration policies and structures are fair, competitive and aligned with the
long-term interests of the company and its shareholders.
The company’s annual Corporate Governance Statement provides further information on the role of this committee,
and the full statement is available at URL: http://www.alkane.com.au/company/governance
(c) Use of remuneration consultants
No remuneration consultants were engaged in the financial year to provide remuneration advice.
(d) Executive remuneration policy and framework
In determining executive remuneration, the Board (or the Remuneration Committee as its delegate) aims to ensure
that remuneration practices:
• are competitive and reasonable, enabling the company to attract and retain key talent while building a diverse,
sustainable and high achieving workforce;
• are aligned to the company’s strategic and business objectives and the creation of shareholder value;
• promote a high-performance culture recognising that leadership at all levels is a critical element in this regard;
• are transparent; and
• are acceptable to shareholders.
The executive remuneration framework has three components:
• Total fixed remuneration (TFR);
• Short-term incentives (STI); and
• Long-term incentives (LTI).
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(i) Executive remuneration mix
The company has in place executive incentive programs which provide the mechanism to place a material portion
of executive pay ‘at risk’.
(ii) Total fixed remuneration
A review is conducted of remuneration for all employees and executives on an annual basis or as required.
The Remuneration Committee is responsible for determining executive TFR.
(iii) Incentive arrangements
The company may utilise both short-term and long-term incentive programs to balance the short and long-term
aspects of business performance, to reflect market practice, to attract and retain key talent, and to ensure a strong
alignment between the incentive arrangements of executives and the creation and delivery of shareholder return.
Performance rights have been used in the current period to incentivise the company’s executive and KMP.
The performance rights plan was approved by shareholders at the 2016 Annual General Meeting.
Short-term incentives
The executives have the opportunity to earn an annual short-term incentive (STI) if predefined targets are achieved.
The executive STI is provided in the form of rights to ordinary shares in the company that vest at the end of the
12-month period, provided the predefined targets are met. On vesting, the rights automatically convert into
one ordinary share each. The executives do not receive any dividends and are not entitled to vote in relation to
the rights to shares during the vesting period. If an executive ceases to be employed by the group within the
performance period (the service condition), the rights will be forfeited, except in limited circumstances that are
approved by the Board on a case-by-case basis.
STI awards for the executive team in the 2024 financial year were based on the scorecard measures and weighting
as disclosed below. Targets were approved by the Remuneration Committee through a rigorous process to align to
the company’s strategic and business objectives.
Performance metrics
Weighting
Production performance at TGO
20%
Cost performance at TGO
20%
Safety Performance, Environment & Social Licence
25%
SAR Development
15%
SAR Resources Increase
5%
NMPP Resource Increase
15%
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In FY23, the following STI results were achieved:
STI – FY23
Weighting
(%)
Metric
Target
Reward
(%)
Actual
Result
Actual
Reward
(%)
Production ounces at TGO
20
Stretch
115% Budget (63,250oz)
100
70,253oz
100
AISC at TGO
20
Stretch
85% of Budget (A$1,658/oz)
100
A$1,602/oz
100
Safety Performance
Environment Social Licence
25
Board will assess the company’s
performance taking into account
safety, environmental & regulatory
performance as well as risk,
community and social licence
improvement
Board
Discretion
78
SAR Development
15
Target
Both decline spirals commenced at
Roswell
50
Declines
50
SAR Resource Increase
(incl McLeans)
5
Threshold
30,000oz at > 1.5g/t added
0
No change
0
NMPP Resource Increase
15
Stretch
4,000,000oz AuEq at 0.3g/t (AuEq)
cut-off
100
4.7Moz
AuEq
100
FY23 STIs were revalued by Deloitte via a Black-Scholes model upon reaching the above vesting criteria. Executive
director incentives vested on 21 November 2023 with a fair value of $0.640. Other executives (key management
personnel) were granted on 2 October 2023 and had a fair value of $0.610. Both are subject to a restricted trading
period of one year from vesting date.
The Remuneration Committee has the discretion to adjust short-term incentives downwards in light of unexpected
or unintended circumstances.
Long-term incentives
The LTI is designed to focus executives on delivering long-term shareholder returns. Eligibility for the plan is
restricted to executives and nominated senior managers, being the employees who are most able to influence
shareholder value. Under the plan, participants have an opportunity to earn up to 100% of their total fixed
remuneration (calculated at the time of approval by the Remuneration Committee) comprised of performance rights.
In previous periods, performance rights were granted in two tranches each year. Each tranche of performance rights
has separate vesting conditions, being share price growth and company milestone events, with the executives’ LTI
weighted more heavily to the share price growth tranche. The LTI vesting period is three years. In FY2024 LTIs were
issued with vesting conditions linked to total shareholder return (‘TSR’) with a vesting period of three years.
The performance rights will be provided in the form of rights to ordinary shares in Alkane Resources Ltd that will
vest at the end of the three-year vesting period, provided the predefined targets are met. On vesting, the rights
automatically convert into one ordinary share each. Participants do not receive any dividends and are not entitled
to vote in relation to the rights to shares prior to the vesting period. If a participant ceases to be employed by the
group within this period, the rights will be forfeited, except in limited circumstances that are approved by the Board
on a case-by-case basis.
Participation in the plan is at the Board’s discretion and no individual has a contractual right to participate in
the plan.
Targets are generally reviewed annually and set for a forward three-year period. Performance-related targets reflect
factors such as the expectations of the group’s business plans, the stage of development of the group’s projects and
the industry business cycle. The most appropriate target benchmark will be reviewed each year prior to the granting
of rights.
During the year, conditional rights to the FY21 LTI lapsed because the conditions have not been, or have become
incapable of being, satisfied.
Note: Board discretion to modify or cancel if fatality, serious injury or serious ESG incident
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FY24 LTIs were valued upon issue by Deloitte using a Monte-Carlo valuation model. Executive director incentives
were granted on 21 November 2023 and have a fair value of $0.369. Other executives (key management personnel)
were granted on 2 October 2023 at a fair value of $0.358.
The Remuneration Committee is responsible for determining the LTI to vest based on an assessment of whether the
predefined targets are met. To assist in this assessment, the committee receives detailed reports on performance
from management. The committee has the discretion to adjust LTIs downwards in light of unexpected or
unintended circumstances.
(iv) Clawback policy for incentives
Under the terms and conditions of the company’s incentive plan offer and the plan rules, the Board (or the
Remuneration Committee as its delegate) has discretion to determine forfeiture of unvested equity awards
in certain circumstances (e.g. unlawful, fraudulent or dishonest behaviour or serious breach of obligations to
the company). All incentive offers and final outcomes are subject to the full discretion of the Board (or the
Remuneration Committee as its delegate).
(v) Share trading policy
The trading of shares issued to participants under any of the company’s employee share plans is subject to, and
conditional upon, compliance with the company’s employee share trading policy. Executives are prohibited from
entering into any hedging arrangements over unvested rights under the company’s employee incentive plans. The
company would consider a breach of this policy as gross misconduct which may lead to disciplinary action and
potentially dismissal.
(e) Statutory performance indicators
The company aims to align executive remuneration to the company’s strategic and business objectives and the
creation of shareholder wealth. The table below shows measures of the group’s financial performance over the
last five years as required by the Corporations Act 2001. However, these are not necessarily consistent with the
specific measures in determining the variable amounts of remuneration to be awarded to KMP. As a consequence,
there may not always be a direct correlation between the statutory key performance measures and the variable
remuneration rewarded.
30 June
2024
30 June
2023
30 June
2022
30 June
2021
30 June
2020
Revenue ($’000)
172,991
190,527
165,010
127,833
74,397
Profit/(loss) for the year attributable to owners ($’000)
17,677
42,450
70,251
55,701
12,762
Basic earnings/(loss) per share (cents)
2.93
7.1
11.8
5.6
2.4
Dividend payments ($’000)
-
-
-
-
-
Share price at period end ($)
0.50
0.71
0.62
1.15
1.21
Total KMP incentives as a percentage of profit/(loss) for the year (%)
5.0
5.9
1.8
2.1
8.3
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(f) Non-Executive Director remuneration policy
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the company in
the form of a letter of appointment. The letter summarises the Board policies and terms, including remuneration,
relevant to the office of director.
Non-Executive Directors receive a Board fee and fees for chairing or participating on Board Committees.
Non-Executive Directors appointed do not receive retirement allowances. Fees provided are inclusive of
superannuation and the Non-Executive Directors do not receive performance-based pay.
Fees are reviewed annually by the Remuneration Committee taking into account comparable roles and market data
obtained from independent data providers.
The maximum annual aggregate directors’ fee pool limit (inclusive of applicable superannuation) is $950,000 and
was approved by shareholders at the Annual General Meeting on 17 November 2021.
Details of Non-Executive Director fees in the year ended 30 June 2024 are as follows:
$ per annum
Base fees
Chair
191,000
Other Non-Executive Directors
95,000
Additional fees
Audit Committee – chair
12,500
Audit Committee – member
7,500
Remuneration Committee – chair
12,500
Remuneration Committee – member
7,500
For services in addition to ordinary services, Non-Executive Directors may charge per diem consulting fees at the
rate specified by the Board from time to time for a maximum of four days per month over a 12-month rolling basis.
Any fees in excess of this limit are to be approved by the Board.
(g) Voting and comments made at the company’s 2023 Annual General Meeting
The company received 94.26% of “yes” votes on its remuneration report for the financial year ended 30 June
2023. The company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
(h) Details of remuneration
The following table shows details of the remuneration expense recognised for the directors and the KMP of the
group for the current and previous financial year measured in accordance with the requirements of the accounting
standards.
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30 June 2024
Fixed Remuneration
Variable Renumeration
Total
Cash
Salary(a)
Annual
and long
service
leave(b)
Post-
employment
benefits(c)
Cash
bonus
(a)(f)
Bonus
Employee
Share
Plan(g)
STI
Performance
Rights(d)
LTI
Performance
Rights(d)
$
$
$
$
$
$
$
Executive Directors
N P Earner
622,601
43,026
27,399
-
-
50,294
399,521
1,142,841
D I Chalmers
303,401
27,011
27,399
-
-
17,064
93,842
468,717
Other KMP
J Carter
474,765
17,843
27,399
-
1,000
25,787
146,800
693,594
S Parsons
457,449
10,887
27,399
69,446
1,000
12,449
141,671
720,301
Total Executive
Directors and other
KMP
1,858,216
98,767
109,596
69,446
2,000
105,594
781,834
3,025,453
Total NED
remuneration(e)
398,175
-
30,325
-
-
-
-
428,500
Total KMP
remuneration expense
2,256,391
98,767
139,921
69,446
2,000
105,594
781,834
3,453,953
30 June 2023
Fixed Remuneration
Variable Renumeration
Total
Cash
Salary(a)
Annual
and long
service
leave(b)
Post-
employment
benefits(c)
Cash
bonus
(a)(f)
Bonus
Employee
Share
Plan(g)
STI
Performance
Rights(d)
LTI
Performance
Rights(d)
$
$
$
$
$
$
$
Executive Directors
N P Earner
624,708
(13,594)
25,292
-
-
200,058
432,818
1,269,282
D I Chalmers
305,508
34,855
25,292
-
-
67,876
105,018
538,549
Other KMP
J Carter
453,175
20,529
27,500
-
1,000
129,428
148,511
780,143
S Parsons
436,600
24,948
27,500
106,562
1,000
19,313
147,256
763,179
Total Executive
Directors and other
KMP
1,819,991
66,738
105,584
106,562
2,000
416,675
833,603
3,351,153
Total NED
remuneration(e)
399,423
-
29,077
-
-
-
-
428,500
Total KMP
remuneration expense
2,219,414
66,738
134,661
106,562
2,000
416,675
833,603
3,779,653
(a) Short-term benefits as per Corporations Regulation 2M.3.03(1) Item 6.
(b) Other long-term benefits as per Corporations Regulation 2M.3.03(1) Item 8. The amounts disclosed in this column represent the movements in the associated provisions.
They may be negative where a KMP has taken more leave than accrued during the year.
(c)
Post-employment benefits are provided through superannuation contributions.
(d) Rights to deferred shares granted under the executive STI and LTI schemes are expensed over the performance period, which includes the year to which the incentive relates
and the subsequent vesting period of the rights.
Rights to deferred shares are equity-settled share-based payments as per the Corporations Regulations 2M.3.03(1) Item11. These include negative amounts for the rights
forfeited during the year.
Details of each grant of share right are provided in the table in section (j). Shareholder approval was received in advance to the grant of share rights where required.
(e)
Refer below for details of Non-Executive Directors’ (NED) remuneration.
(f)
The cash bonus includes a paid short-term incentive for FY2023 ($56,997) and short-term incentive for FY2024 ($12,449) that will be paid subject to final determination.
(g) Recipients of shares issued under the Bonus Employee Share Plan will not be able to deal with the new shares until the earlier of the third anniversary of the issue date and
the date on which they cease to be an employee of the company.
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Cash salary and
fees
$
Superannuation
$
Total
$
30 June 2024
Non-Executive Directors
I J Gandel
172,072
18,928
191,000
A D Lethlean
103,603
11,397
115,000
G M Smith
122,500
-
122,500
Total Non-Executive Directors
398,175
30,325
428,500
30 June 2023
Non-Executive Directors
I J Gandel
172,851
18,149
191,000
A D Lethlean
104,072
10,928
115,000
G M Smith
122,500
-
122,500
Total Non-Executive Directors
399,423
29,077
428,500
Fixed remuneration
At risk – LTI
At risk – STI
2024
%
2023
%
2024
%
2023
%
2024
%
2023
%
Executive Directors of Alkane Resources Ltd
N P Earner
61
50
35
34
4
16
D I Chalmers
76
68
20
20
4
12
Other Key Management Personnel
J Carter
75
64
21
19
4
17
S Parsons
69
64
20
19
11
17
Name and Position
Term of agreement
TFR (1)
Termination
payment (2)
N Earner – Managing Director
Ongoing commencing 1 September 2017
$650,000
see note 2 below
D I Chalmers – Technical Director
Ongoing commencing 1 September 2017
$330,800
6 months
J Carter – Chief Financial Officer
Ongoing commencing 1 October 2018
$502,164
3 months
S Parsons – Executive General Manager Operations
Ongoing commencing 1 October 2015
$457,499
1 month
The relative proportions of remuneration expense recognised during the year that are linked to performance and
those that are fixed are as follows:
Remuneration and other terms of employment for KMP are formalised in service agreements. Details of these
agreements are as follows:
(i) Service agreements
(1) Total Fixed Remuneration (TFR) is for the year ended 30 June 2024 and is inclusive of superannuation but does not include long service leave accruals. TFR is reviewed
annually by the Remuneration Committee.
(2) Specified termination payments are within the limits set by the Corporations Act 2001. The termination benefit provision for the Managing Director was approved at the
Annual General Meeting on 29 November 2017.
Mr Earner may resign with three months’ notice; or
Alkane may terminate the Executive Employment agreement with three months’ notice; or
Where Mr Earner resigns as a result of a material diminution in the position, Mr Earner will be entitled to payment in lieu of 12 months’ notice and short-term incentives and
long-term incentives granted or issued but not yet vested.
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Alkane Resources Annual Report 2024
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Date of grant
Number
of rights
or shares
granted
Fair value of
share rights
and shares at
the date of
grant
$
Share rights
at fair value
$
Performance
period end
Share-based
payment
expense
current year
$
Executive Directors
D I Chalmers
FY 2022 LTI – Performance Rights
17/11/2021
193,809
0.598
115,898
31/08/2024
38,738
FY 2023 LTI – Performance Rights
28/11/2022
255,674
0.323
82,583
31/08/2025
27,603
FY 2024 LTI – Performance Rights
21/11/2023
269,336
0.369
99,385
31/08/2026
27,501
FY 2024 STI – Performance Rights(d)
89,810
30/06/2024
17,064
N Earner
FY 2022 LTI – Performance Rights
17/11/2021
825,115
0.598
493,419
31/08/2024
164,924
FY 2023 LTI – Performance Rights
28/11/2022
1,088,497
0.323
351,585
31/07/2022
117,516
FY 2024 LTI – Performance Rights
21/11/2023
1,146,657
0.369
423,116
31/08/2026
117,082
FY 2024 STI – Performance Rights(d)
264,706
30/06/2024
50,294
Other Key Management Personnel
J Carter
FY 2022 LTI – Performance Rights
26/10/2021
270,677
0.604
163,489
31/08/2024
54,646
FY 2023 LTI – Performance Rights
17/10/2022
378,237
0.410
155,077
31/08/2025
51,834
FY 2024 LTI – Performance Rights
13/10/2023
407,018
0.358
145,712
31/08/2026
40,320
FY 2024 STI – Performance Rights(d)
135,720
30/06/2024
25,787
Bonus Employee Shares(c)
25/10/2023
1,562
0.640
1,000
1,000
S Parsons
FY 2022 LTI – Performance Rights
26/10/2021
261,010
0.604
157,650
31/08/2023
52,694
FY 2023 LTI – Performance Rights
17/10/2022
365,194
0.410
149,730
31/08/2024
50,047
FY 2024 LTI – Performance Rights
13/10/2023
392,982
0.358
140,688
31/08/2026
38,930
FY 2024 STI – Performance Rights(d)
65,520
12,449
Bonus Employee Shares(c)
25/10/2023
1,562
0.640
1,000
1,000
The determination of the number of rights that are to vest or be forfeited during a financial year is made by
the Remuneration Committee after the statutory audit has been substantially completed. As such, the actual
determination is made after the balance sheet date. Where there are rights that have vested or been forfeited,
details will be included in the Remuneration Report as the relevant performance period will conclude at the end of
the relevant financial year.
(a) The value at grant date for share rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share-Based Payments. Differences will
arise between the number of share rights at fair value in the table above and the STI and LTI percentages mentioned in section (d) due to different timing of valuation of
rights as approved by the Remuneration Committee and at grant. Refer to note 28 for details of the valuation techniques used for the rights plan.
(b) Share rights only vest if performance and service targets are achieved. The determination is usually made at the conclusion of the statutory audit.
(c)
Recipients of shares issued under the Bonus Employee Share Plan will not be able to deal with the new shares until the earlier of the third anniversary of the Issue Date and
the date on which they cease to be an employee of the company.
(d)
The Board will calculate the STI earned value shortly after 30 June 2024 in accordance with the metrics agreed. The calculated earned value will be converted into restricted
rights calculated at the August 2024 VWAP for a service period of one year. The restricted rights held will be converted into fully paid shares in the following year.
(j) Details of share-based payments and performance against key metrics
Details of each grant of share rights affecting remuneration in the current or future reporting period are set out below.
90
Alkane Resources Annual Report 2024
FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
Shareholder return comparison
Proportion of performance rights that vest
%
TSR is less than Gold Index TSR
-
TSR is equal to Gold Index TSR
25
TSR is >5% and <10% to Gold Index TSR
50
TSR is equal to or >10% to Gold Index TSR
100
Performance against key metrics
The STI performance metrics for the year are detailed in section (d)(iii) of the Remuneration Report.
The company’s TSR for FY2023 and FY2024 will be compared to the S&P/ASX All Ordinaries Gold (Sub industry)
XGD (Gold Index). TSR and number of performance rights will vest as follows:
(k) Shareholdings and share rights held by Key Management Personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at the start
of the year
Received as part of
remuneration
Received on
vesting of PRs
Disposals / other
Balance at the end
of the year
Ordinary shares
I J Gandel
118,823,930
-
-
(8,695,653)
110,128,277
A D Lethlean
720,086
-
-
-
720,086
D I Chalmers
5,906,275
-
104,070
-
6,010,345
N P Earner
5,041,715
-
306,735
-
5,348,450
G Smith
331,875
-
-
-
331,875
J Carter
541,137
1,587
153,957
-
696,681
S Parsons
527,312
1,587
74,324
(100,000)
503,223
131,892,330
3,174
639,086
(8,795,653)
123,738,937
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each
director and other members of key management personnel of the consolidated entity, including their personally
related parties, is set out below:
Balance at the
start of the
year
Granted
Vested
Expired/
forfeited/
other
Balance at the
end of the year
Performance rights over ordinary shares
D I Chalmers – Performance rights
728,456
391,172
(104,070)
(174,903)
840,655
N P Earner – Performance rights
2,907,693
1,505,758
(306,735)
(687,346)
3,419,370
J Carter – Performance rights
1,008,401
584,055
(153,957)
(205,530)
1,232,969
S Parsons – Performance rights
914,742
478,448
(74,324)
(214,214)
1,104,652
5,559,292
2,959,433
(639,086)
(1,281,993)
6,597,646
91
Alkane Resources Annual Report 2024
FINANCIAL REPORT DIRECTORS’ REPORT - REMUNERATION REPORT
(l) Other transactions with Key Management Personnel
There were no other transactions with KMP during the financial year ended 30 June 2024.
There were no unissued ordinary shares of Alkane Resources Ltd under performance rights outstanding at the date
of this report.
This concludes the remuneration report, which has been audited.
Indemnity and insurance of officers
Alkane Resources Ltd has entered into deeds of indemnity, access and insurance with each of the directors.
These deeds remain in effect as at the date of this report. Under the deeds, the company indemnifies each
director to the maximum extent permitted by law against legal proceedings or claims made against or incurred by
the directors in connection with being a director of the company, or breach by the group of its obligations under
the deed.
The liability insured is the indemnification of the group against any legal liability to third parties arising out of any
directors’ or officers’ duties in their capacity as a director or officer other than indemnification not permitted by law.
No liability has arisen under this indemnity as at the date of this report.
The group has not otherwise, during or since the financial year, indemnified nor agreed to indemnify an officer
of the group or of any related body corporate, against a liability incurred as such by an officer.
During the year the company has paid premiums in respect of directors’ and executive officers’ insurance.
The contracts contain prohibitions on disclosure of the amount of the premiums and the nature of the liabilities
under the policies.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of
taking responsibility on behalf of the company for all or part of those proceedings.
Non-audit services
The company may decide to employ the auditor on assignments additional to their statutory audit duties where
the auditor’s expertise and experience with the group is important.
The directors, in accordance with advice provided by the audit committee, are satisfied that the provision of non-audit
services during the financial year, by the auditor (or by another person or firm on the auditor’s behalf), is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 23 to the financial statements do not
compromise the external auditor’s independence requirements of the Corporations Act 2001 for the following
reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants.
92
Alkane Resources Annual Report 2024
FINANCIAL REPORT DIRECTORS’ REPORT
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
set out immediately after this directors’ report.
Rounding of amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, issued by the Australian Securities
and Investments Commission, relating to the ‘rounding-off’ of amounts in the directors’ report and financial report.
Amounts in this report have been rounded off in accordance with that ASIC Legislative Instrument to the nearest
thousand dollars, or in certain cases, to the nearest dollar.
This report is made in accordance with a resolution of directors.
On behalf of the directors
N P Earner
Managing Director
26 August 2024
Perth
93
Alkane Resources Annual Report 2024
FINANCIAL REPORT AUDITOR’S INDEPENDENCE DECLARATION
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the audit of Alkane Resources Ltd for the year ended 30 June 2024, I declare that
to the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Alkane Resources Ltd and the entities it controlled during the period.
Ian Campbell
Perth
Partner
PricewaterhouseCoopers
26 August 2024
94
Alkane Resources Annual Report 2024
FINANCIAL REPORT FINANCIAL STATEMENTS
Financial Statements
Consolidated Financial Statements
Consolidated statement of profit or loss and other comprehensive income
96
Consolidated balance sheet
97
Consolidated statement of changes in equity
98
Consolidated statement of cash flows
99
Notes to the Consolidated Financial Statements
Note 1. Segment information
100
Note 2. Revenue
100
Note 3. Expenses
101
Note 4. Income tax
102
Note 5. Cash and cash equivalents
105
Note 6. Trade and other receivables
105
Note 7. Inventories
106
Note 8. Financial assets at fair value through other comprehensive income
106
Note 9. Derivative financial instruments
107
Note 10. Other financial assets
108
Note 11. Property, plant and equipment
109
Note 12. Exploration and evaluation
110
Note 13. Trade and other payables
111
Note 14. External borrowings
111
Note 15. Provisions
112
Note 16. Issued capital
114
Note 17. Reserves
114
Note 18. Retained profits
116
Note 19. Critical accounting judgements, estimates and assumptions
116
Note 20. Financial risk management
118
Note 21. Capital risk management
122
Note 22. Key management personnel disclosures
122
Note 23. Remuneration of auditors
122
Note 24. Contingent liabilities
122
Note 25. Commitments
122
Note 26. Events after the reporting period
123
Note 27. Related party transactions
123
Note 28. Share-based payments
124
Note 29. Earnings per share
126
Note 30. Parent entity information
127
Note 31. Interests in subsidiaries
128
Note 32. Deed of cross-guarantee
128
Note 33. Reconciliation of profit after income tax to net cash from operating activities
129
Note 34. Material accounting policy information
130
95
Alkane Resources Annual Report 2024
FINANCIAL REPORT FINANCIAL STATEMENTS
These financial statements are consolidated financial statements for the group consisting of Alkane
Resources Ltd and its subsidiaries.
The financial statements are presented in the Australian currency.
Alkane Resources Ltd is a company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Alkane Resources Ltd
Level 4, 66 Kings Park Road
West Perth WA 6005
The financial statements were authorised for issue by directors on 26 August 2024. The directors have the
power to amend and reissue the financial statements.
All press releases, financial reports and other information are available in the investor section on our website:
www.alkane.com.au
96
Alkane Resources Annual Report 2024
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of profit or loss and
other comprehensive income
For the year ended 30 June 2024
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Note
2024
$’000
2023
$’000
Continuing operations
Revenue
2
172,991
190,527
Cost of sales
3
(138,399)
(119,113)
Gross profit
34,592
71,414
Other income
509
430
Interest income
2,527
2,398
Expenses
Other expenses
3
(10,949)
(12,598)
Finance costs
3
(2,347)
(1,057)
Net gain/(loss) on disposal of property, plant and equipment
110
-
(13,186)
(13,655)
Profit before income tax expense
24,442
60,587
Income tax expense
4
(6,765)
(18,137)
Profit after income tax expense for the year attributable to the
owners of Alkane Resources Ltd
18
17,677
42,450
Other comprehensive loss
Items that will not be reclassified subsequently to profit or loss
Changes in the fair value of equity investments at fair value
through other comprehensive income, net of tax
8
(7,099)
(16,140)
Net change in the fair value of cash flow hedges taken to equity,
net of tax
17
(1,449)
-
Other comprehensive income/(loss) for the year, net of tax
(8,548)
(16,140)
Total comprehensive income for the year attributable to the
owners of Alkane Resources Ltd
9,129
26,310
Note
Cents
Cents
Basic earnings per share
29
2.93
7.10
Diluted earnings per share
29
2.89
7.00
97
Alkane Resources Annual Report 2024
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheet
As at 30 June 2024
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Note
2024
$’000
2023
$’000
Assets
Current assets
Cash and cash equivalents
5
45,519
80,291
Trade and other receivables
6
3,848
5,167
Inventories
7
22,241
21,906
Derivative financial instruments
9
394
-
Total current assets
72,002
107,364
Non-current assets
Property, plant and equipment
11
271,750
111,104
Exploration and evaluation
12
101,403
161,310
Financial assets at fair value through other comprehensive income
8
299
18,646
Derivative financial instruments
9
5,354
-
Other financial assets
10
13,888
13,766
Total non-current assets
392,694
304,826
Total assets
464,696
412,190
Liabilities
Current liabilities
Trade and other payables
13
23,744
23,508
External borrowings
14
16,144
7,371
Current tax liabilities
4
5,134
7,283
Provisions
15
6,891
5,386
Other liabilities
445
153
Total current liabilities
52,358
43,701
Non-current liabilities
External borrowings
14
32,874
6,175
Provisions
15
21,998
17,369
Deferred tax
4
47,633
44,721
Other liabilities
459
227
Total non-current liabilities
102,964
68,492
Total liabilities
155,322
112,193
Net assets
309,374
299,997
Equity
Issued capital
16
223,319
222,224
Reserves
17
(85,188)
(75,166)
Retained profits
18
171,243
152,939
Total equity
309,374
299,997
98
Alkane Resources Annual Report 2024
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity
For the year ended 30 June 2024
Share capital
$’000
Share-based
payments
reserve
$’000
Other
reserves
$’000
Retained
Profits
$’000
Total equity
$’000
Balance at 1 July 2023
222,224
6,003
(81,169)
152,939
299,997
Profit after income tax expense for the year
-
-
-
17,677
17,677
Other comprehensive loss for the year, net of tax
-
-
(8,548)
-
(8,548)
Total comprehensive income/(loss) for the year
-
-
(8,548)
17,677
9,129
Share placement
-
-
-
-
-
Share issue transaction costs (note 16)
(9)
-
-
-
(9)
Share-based payments (note 28)
228
103
-
-
331
Deferred tax recognised in equity
(74)
-
-
-
(74)
Transfer of gain on disposal of equity investments at
fair value through other comprehensive income to
retained earnings
-
-
(627)
627
-
Employee share awards vested
950
(950)
-
-
-
Balance at 30 June 2024
223,319
5,156
(90,344)
171,243
309,374
Share capital
$’000
Share-based
payments
reserve
$’000
Other
reserves
$’000
Retained
Profits
$’000
Total equity
$’000
Balance at 1 July 2022
218,185
5,229
(65,869)
111,329
268,874
Profit after income tax expense for the year
-
-
-
42,450
42,450
Other comprehensive loss for the year, net of tax
-
-
(16,140)
-
(16,140)
Total comprehensive income/(loss) for the year
-
-
(16,140)
42,450
26,310
Share issue transaction costs (note 16)
(20)
-
-
-
(20)
Share-based payments (note 28)
197
2,806
-
-
3,003
Deferred tax recognised in equity
(70)
-
-
-
(70)
Transfer of gain on disposal of equity investments at
fair value through other comprehensive income to
retained earnings
-
-
840
(840)
-
Ordinary shares issued
1,900
-
-
-
1,900
Employee share awards vested
2,032
(2,032)
-
-
-
Balance at 30 June 2023
222,224
6,003
(81,169)
152,939
299,997
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
99
Alkane Resources Annual Report 2024
FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of cash flows
For the year ended 30 June 2024
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Note
2024
$’000
2023
$’000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
172,991
190,527
Payments to suppliers (inclusive of GST)
(109,580)
(90,025)
63,411
100,502
Interest received
2,392
2,479
Finance costs paid
(632)
(590)
Royalties and selling costs
(4,963)
(7,080)
Other receipts
514
235
Derivatives
(7,819)
-
Net cash from operating activities
33
52,903
95,546
Cash flows from investing activities
Payments for investments
(1,094)
(5,580)
Payments for property, plant and equipment and development
expenditure
(115,969)
(33,695)
Proceeds from disposal of property, plant and equipment
150
4
Payments for exploration expenditure
(19,528)
(58,105)
Payments for security deposits
(122)
(269)
Proceeds from disposal of investments
13,043
6,217
Net cash used in investing activities
(123,520)
(91,428)
Cash flows from financing activities
Cost of share issue
16
(9)
(20)
Proceeds from borrowings
43,815
6,686
Repayment of borrowings
(7,516)
(8,189)
Principal elements of lease payment
(445)
(198)
Net cash from/(used in) financing activities
35,845
(1,721)
Net increase/(decrease) in cash and cash equivalents
(34,772)
2,397
Cash and cash equivalents at the beginning of the financial year
80,291
77,894
Cash and cash equivalents at the end of the financial year
5
45,519
80,291
100 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 1
Note 1. Segment information
The consolidated entity is currently with one operating segment: gold operations. The operating segments are
based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief
Operating Decision Makers) in assessing performance and in determining the allocation of resources.
Costs that do not relate to the gold operating segment have been identified as unallocated costs. Corporate assets
and liabilities that do not relate to the gold operating segment have been identified as unallocated. The group
has formed a tax consolidation group and therefore tax balances are disclosed under the unallocated grouping.
The group utilises a central treasury function resulting in cash balances being included in the unallocated segment.
The group has two customers to which it sells gold, being Macquarie Bank and ABC Refinery. Revenue from these
customers was $68,741,000 and $104,250,000 in 2024 respectively (2023: $33,343,000 and $157,184,000).
Note 2. Revenue
Gold Operations
$’000
Unallocated
$’000
Total
$’000
30 June 2024
Gold sales to external customers
172,991
-
172,991
Interest Income
586
1,941
2,527
173,577
1,941
175,518
Segment net profit /(loss) before income tax
37,537
(8,681)
28,856
30 June 2023
Gold sales to external customers
190,527
-
190,527
Interest Income
707
1,691
2,398
191,234
1,691
192,925
Segment net profit /(loss) before income tax
71,157
(10,570)
60,587
2024
$’000
2023
$’000
Revenue from continuing operations
Gold sales
172,991
190,527
(a) Revenue
Revenue is recognised when the group satisfies its performance obligation and transfers control to a customer.
Control is generally determined to be when the customer has the ability to direct the use of and obtain substantially
all of the remaining benefits from that good or service.
(b) Gold Sales
Bullion revenue is recognised at a point in time upon transfer of control to the customer and is measured at the
amount to which the group expects to be entitled which is based on the deal agreement.
101
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 3
Note 3. Expenses
2024
$’000
2023
$’000
Cost of sales
Cash costs of production
96,666
80,257
Inventory product movement
868
(3,425)
Depreciation and amortisation
35,493
35,617
Royalties and selling costs
5,372
6,664
138,399
119,113
(a) Cash costs of production
Cash costs of production include ore and waste mining costs, processing costs and site administration and
support costs.
Employee remuneration included in cash costs of production totalled $45,945,000 (2023: $38,185,000). Total
employee remuneration benefits for the year were $49,992,000 (2023: $41,965,000).
(b) Inventory product movement
Inventory product movement represents the movement in the balance sheet inventory ore stockpile, gold in circuit
and bullion on hand.
Refer to note 7 for further details on the group’s accounting policy for inventory.
(c) Inventory product provision for net realisable value
Inventory must be carried at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business less estimated costs to complete processing and to make a sale. The net
realisable value provision equals the decrement between the net realisable value and the carrying value before
provision.
Refer to note 7 for further details on the group’s accounting policy for inventory.
2024
$’000
2023
$’000
Other expenses
Corporate administration
3,814
3,144
Employee remuneration and benefits expensed
3,236
3,010
Share-based payments
331
3,003
Professional fees and consulting services
1,990
1,471
Exploration expenditure provided for or written off
3
497
Directors’ fees and salaries expensed
781
785
Depreciation
650
491
Non-core project expenses
144
197
10,949
12,598
102 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
Note 4. Income tax
(a) Income tax expense
(d) Finance costs
2024
$’000
2023
$’000
Finance costs
Interest Expense
1,518
989
Other
829
68
2,347
1,057
(b) Reconciliation of income tax expense/(benefit) to prima facie tax payable
2024
$’000
2023
$’000
Current tax
Current tax on profits for the year
6,116
7,283
Adjustments for current tax of prior periods
(2,109)
(300)
Total current tax expense
4,007
6,983
Deferred income tax
(Increase)/decrease in deferred tax asset
(3,045)
(1,488)
Increase in deferred tax liabilities
5,803
12,642
Total deferred tax expense
2,758
11,154
Income tax expense
6,765
18,137
Income tax expense is attributable to:
Profit from continuing operations
6,765
18,137
2024
$’000
2023
$’000
Profit from continued operations before income tax expense
24,442
60,587
Tax at the Australian tax rate of 30% (2023 – 30%)
7,333
18,176
Tax benefits of deductible equity raising costs
(77)
(77)
Non-deductible share-based payments
31
843
Non-deductible expenses
210
20
(Over)/Under Provision for Prior Year
(90)
(60)
Utilisation of previously unrecognised tax losses
(642)
(765)
6,765
18,137
103
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(c) Deferred tax assets
Movements
Rehabilitation
Provision and assets
$’000
Property, plant and
equipment
$’000
Other
$’000
Total
$’000
At 1 July 2022
4,070
5,823
2,274
12,167
- profit or loss
430
740
317
1,487
- direct to equity
-
-
(71)
(71)
At 30 June 2023
4,500
6,563
2,520
13,583
At 1 July 2023
4,500
6,563
2,520
13,583
- profit or loss
341
2,423
281
3,045
- directly to equity
-
-
547
547
As at 30 June 2024
4,841
8,986
3,348
17,175
Movements
Exploration
Expenditure
$’000
Property, plant and
equipment
$’000
Other
$’000
Total
$’000
At 1 July 2022
29,528
12,282
6,546
48,356
Charged/(credited)
-
-
-
-
– to profit or loss
14,634
(1,719)
(274)
12,641
– directly to equity
-
-
(2,333)
(2,333)
– directly to retained earnings
-
-
(360)
(360)
At 30 June 2023
44,162
10,563
3,579
58,304
At 1 July 2023
44,162
10,563
3,579
58,304
Charged/(credited)
-
-
-
-
– to profit or loss
6,551
1,331
(2,079)
5,803
– transfer between asset classes
(17,788)
17,788
-
-
– directly to equity
-
-
432
432
– directly to retained earnings
-
-
269
269
At 30 June 2024
32,925
29,682
2,201
64,808
(d) Deferred tax liabilities
2024
$’000
2023
$’000
The balance comprises temporary differences attributable to:
Exploration expenditure
(32,925)
(44,162)
Property, plant & equipment
(29,682)
(10,562)
Other
(2,201)
(3,580)
Gross recognised deferred tax liabilities
(64,808)
(58,304)
Set-off of deferred tax assets
17,175
13,583
(47,633)
(44,721)
Net recognised deferred tax assets/(liabilities) are attributable to:
Losses and temporary differences carried forward for continued operations
(47,633)
(44,721)
104 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 4
(e) Deferred tax recognised directly in equity
2024
$’000
2023
$’000
Relating to equity raising costs
74
71
Relating to investments/financial instruments
(188)
(360)
Relating to realised gains posted directly to retained earnings
269
(2,333)
155
(2,622)
Current tax liabilities
2024
$’000
2023
$’000
Current tax liabilities
6,116
7,283
PAYG (‘Pay as you go’) Instalments
(982)
-
Total current tax liabilities
5,134
7,283
(f) Unrecognised temporary differences and tax losses
2024
$’000
2023
$’000
Unrecognised tax losses
13,135
14,859
Deductible temporary differences
19,209
9,858
32,344
24,717
Potential tax benefit at 30% (2023: 30%)
9,703
7,415
The potential benefit of carried forward tax losses will only be obtained if taxable income is derived of a nature and
amount sufficient to enable the benefit from the deductions to be realised. In accordance with the group’s policies
for deferred taxes, a deferred tax asset is recognised only if it is probable that sufficient future taxable income will
be generated to offset against the asset.
Determination of future taxable profits requires estimates and assumptions as to future events and circumstances
including commodity prices, ore resources, exchange rates, future capital requirements, future operational
performance, the timing of estimated cash flows, and the ability to successfully develop and commercially exploit
resources.
Tax legislation prescribes the rate at which tax losses transferred from entities joining a tax consolidation group
can be applied to taxable incomes and this rate is diluted by changes in ownership, including capital raisings. As a
result, the reduction in the rate at which the losses can be applied to future taxable incomes, the period of time
over which it is forecast that these losses may be utilised has extended beyond that which management considers
prudent to support their continued recognition for accounting purposes. Accordingly, no deferred tax asset has
been recognised for certain tax losses. Recognition for accounting purposes does not impact the ability of the group
to utilise the losses to reduce future taxable profits.
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of
these entities are set off in the consolidated financial statements.
Deferred tax assets relating to deductible temporary differences can only be recognised to the extent that it is
probable that future taxable profits will be available against which the deductible temporary difference can be
utilised. Recognition for accounting purposes does not impact the ability of the group to utilise the deductible
temporary differences to reduce future taxable profits.
105
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 5
Note 5. Cash and cash equivalents
2024
$’000
2023
$’000
Current assets
Cash on hand
45,519
80,291
Cash at bank at balance date weighted average interest rate was 4.28% (2023: 3.13%).
Cash and cash equivalents include cash on hand and deposits held at call with financial institutions and other
short-term, highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
(i) Classification as receivables
Receivables are recognised initially at fair value and then subsequently measured at amortised cost, less provision
for credit losses. As at 30 June 2024, the group has determined that the expected provision for credit losses is not
material (30 June 2023: provision for credit losses was not material).
In determining the recoverability of a trade or other receivables using the expected credit loss model, the group
performs a risk analysis considering the type and age of outstanding receivables, the creditworthiness of the
counterparty, contract provisions, letter of credit and timing of payment.
(ii) Fair value of receivables
Due to the short-term nature of the current receivables, their carrying amount is assumed to be the same as their
fair value.
(iii) Impairment and risk exposure
Information about the impairment of receivables, their credit quality and the group’s exposure to credit risk, foreign
currency risk and interest rate risk can be found in note 20.
Note 6. Trade and other receivables
2024
$’000
2023
$’000
Current assets
Trade receivables
85
240
Prepayment
2,172
3,068
GST
1,591
1,859
3,848
5,167
106 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 7
2024
$’000
2023
$’000
Current assets
Ore stockpiles
8,047
7,741
Gold in circuit
4,126
4,368
Bullion on hand
4,593
5,525
Consumable stores
5,475
4,272
22,241
21,906
(i) Assigning costs to inventories
Costs are assigned to ore stockpiles, gold in circuit and bullion on hand on the basis of weighted average costs.
Inventories must be carried at the lower of cost and net realisable value. Cost comprises direct materials, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. At balance date ore stockpiles, gold in circuit, bullion on hand and consumable
stores were carried at cost.
No provision was recorded at 30 June 2024 to write down inventories to their recoverable value (2023: $nil).
Consumable stores include diesel, explosives and other consumables items. These items are carried at cost.
(ii) Amounts recognised in profit or loss
Consumable inventories recognised as an expense during the year ended 30 June 2024 amounted to $1,509,000
(2023: $2,415,000). These were included in costs of production.
Product inventory movement during the year ended 30 June 2024 amounted to an expense of $868,000
(2023: $3,425,000) and is disclosed as part of cost of sales in note 3.
Note 7. Inventories
2024
$’000
2023
$’000
Non-current assets
Listed securities
Calidus Resources Ltd (ASX: CAI)
-
9,297
Sky Metals Ltd (ASX: SKY)
299
353
Genesis Minerals Ltd (ASX: GMD)
-
8,996
299
18,646
During the year, the following gains/(losses) were recognised in profit or loss and
other comprehensive income
(Losses)/gains recognised in other comprehensive income
(7,099)
(16,140)
Note 8. Financial assets at fair value through other
comprehensive income
Genesis Minerals Ltd (ASX:GMD) was sold in September 2023 for proceeds of $13,040,000.
Calidus Resources (ASX: CAI) entered voluntary administration on 1 July 2024 and Receivers & Managers were
appointed shortly after. The fair value was reduced to $nil as at 30 June 2024.
107
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 9
Fair Value Measurement
30 June 2024
Notes
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Financial Assets at FVOCI
8
299
-
-
299
Hedging derivatives – cash flow hedge
9
-
5,748
-
5,748
Closing fair value
299
5,748
-
6,047
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and
equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price
used for financial assets held by the group is the current bid price. The quoted market price incorporates the
market’s assumptions with respect to changes in economic climate such as rising interest rates and inflation, as well
as changes due to ESG risk. These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (e.g. over-the counter
derivatives) is determined using valuation techniques that maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2. AASB13(86) Revised illustration.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities and for instruments where ESG risk gives rise to a significant
unobservable adjustment.
Fair Value Measurements
2024
$’000
2023
$’000
Current assets
Commodity put options – cash flow hedges
394
-
Non-current assets
Commodity put options – cash flow hedges
5,354
-
5,748
-
Note 9. Derivative financial instruments
During the 2024 financial year, subsidiary company Tomingley Gold Operations Pty Ltd (‘TGO’) entered into several
commodity put option contracts from 31 July 2024 to 30 June 2027. Further information about the group’s hedging
activities is included in note 20.
The cost to enter the contracts was $7,819,000.
• Bought a total of 140,799oz of put options at $3,000/oz
Accounting policy for derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair
value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item
being hedged.
Derivatives are classified as current or non-current depending on the expected period of realisation.
108 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 10
Cash flow hedges
Cash flow hedges are used to cover the consolidated entity’s exposure to variability in cash flows that is
attributable to particular risks associated with a recognised asset or liability or a firm commitment which could
affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognised in other
comprehensive income through the cash flow hedges reserve in equity, whilst the ineffective portion is recognised
in profit or loss. Amounts taken to equity are transferred out of equity and included in the measurement of the
hedged transaction when the forecast transaction occurs.
Cash flow hedges are tested for effectiveness on a regular basis both retrospectively and prospectively to ensure
that each hedge is highly effective and continues to be designated as a cash flow hedge. If the forecast transaction
is no longer expected to occur, the amounts recognised in equity are transferred to profit or loss.
If the hedging instrument is sold, terminated, expires, exercised without replacement or rollover, or if the hedge
becomes ineffective and is no longer a designated hedge, the amounts previously recognised in equity remain in
equity until the forecast transaction occurs.
Amounts recognised in profit or loss
The hedged transactions all arise in future periods and there was no hedge ineffectiveness in the year. There was
therefore no amounts recognised in profit or loss during the year (2023:nil).
Hedge effectiveness
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging
instrument.
For hedges of future gold sales, the group enters into hedge relationships where the critical terms of the
hedging instrument match exactly with the terms of the hedged item. The group therefore performs a qualitative
assessment of effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical
terms no longer match exactly with the critical terms of the hedging instrument, the group uses the hypothetical
derivative method to assess effectiveness.
In hedges of future gold sales, ineffectiveness may arise if the timing of the forecast transaction changes from what
was originally estimated, or if there are changes in the credit risk of the group or the derivative counterparty.
Note 10. Other financial assets
2024
$’000
2023
$’000
Non-current assets
Security deposits
13,888
13,766
The above deposits are held by financial institutions or regulatory bodies as security for rehabilitation obligations as
required under the respective exploration and mining leases or as required under agreement totalling $13,888,000
for the current period (2023: $13,766,000 backed by security deposits).
All interest-bearing deposits are held in Australian dollars and therefore there is no exposure to foreign currency
risk. Please refer to note 20 for the group’s exposure to interest rate risk. The fair value of other financial assets is
equal to its carrying value.
109
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 11
Land and
buildings
$’000
Plant and
equipment
$’000
Capital WIP
$’000
Mine
properties
$’000
Total
$’000
Year ended 30 June 2024
Opening cost
37,647
125,075
9,923
281,801
454,446
Additions
-
-
51,906
49,131
101,036
Transfers between classes
948
5,760
(6,708)
-
-
Transfers from exploration (a)
-
-
21,263
74,527
95,790
Disposals
-
(560)
-
-
(560)
Net movements
948
5,200
66,461
123,658
196,266
Closing cost
38,595
130,275
76,384
405,459
650,712
Opening accumulated depreciation and impairment
(13,714)
(108,431)
-
(221,197)
(343,342)
Depreciation charge
(502)
(12,801)
-
(22,841)
(36,144)
Disposals
3
520
-
-
523
Net movement
(499)
(12,281)
-
(22,841)
(35,621)
Closing accumulated depreciation and impairment
(14,213)
(120,712)
-
(244,038)
(378,963)
Closing net carrying value
24,382
9,563
76,384
161,421
271,750
Note 11. Property, plant and equipment
Land and
buildings
$’000
Plant and
equipment
$’000
Capital WIP
$’000
Mine
properties
$’000
Total
$’000
Year ended 30 June 2023
Opening cost
37,079
115,188
634
261,777
414,678
Additions
-
-
19,800
20,024
39,824
Transfers between classes
568
9,943
(10,511)
-
-
Disposals
-
(56)
-
-
(56)
Net movements
568
9,887
9,289
20,024
39,768
Closing cost
37,647
125,075
9,923
281,801
454,446
Opening accumulated depreciation and impairment
(13,409)
(92,160)
-
(201,723)
(307,292)
To profit or loss
(305)
(16,327)
-
(19,474)
(36,106)
Disposals
-
56
-
-
56
Net movement
(305)
(16,271)
-
(19,474)
(36,050)
Closing accumulated depreciation and impairment
(13,714)
(108,431)
-
(221,197)
(343,342)
Closing net carrying value
23,933
16,644
9,923
60,604
111,104
(a) Transfer from exploration: In July 2023, the group was granted a mining lease for the Tomingley Gold Extension Project. As a result of this, $95,790,000 in capitalised
exploration expenditure has been transferred into mine development assets and WIP. This includes a historical impairment provision of $8,319,000. Refer to note 12 for further
information.
All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment
charges. Historical cost includes:
• expenditure that is directly attributable to the acquisition of the items;
• direct costs associated with the commissioning of plant and equipment including pre-commissioning costs in
testing the processing plant;
• where the asset has been constructed by the group, the cost of all materials used in construction, direct labour
on the project and project management costs associated with the asset; and
• the present value of the estimated costs of dismantling and removing the asset and restoring the site on which
it is located.
110 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 12
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the cost
of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost
over their estimated useful lives as follows:
Buildings
units of production
Plant and equipment
units of production
Mining properties
units of production
Office equipment
3-5 years
Furniture and fittings
4 years
Motor vehicles
4-5 years
Software
2-3 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included
in the statement of profit or loss and other comprehensive income.
Mine properties
Mine properties represent the accumulation of all exploration, evaluation and development expenditure incurred by
the group in relation to areas of interest for which the technical feasibility and commercial viability of the extraction
of mineral resources are demonstrable.
When further development expenditure is incurred in respect of a mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when it is probable that the
additional future economic benefits associated with the expenditure will flow to the group. Otherwise, such
expenditure is classified as part of the cost of production. Mine properties are amortised on a units of production
basis over the economically recoverable resources of the mine concerned.
Note 12. Exploration and evaluation
2024
$’000
2023
$’000
Opening balance
161,310
98,498
Expenditure during the year
35,886
63,309
Amounts provided for or written off
(3)
(497)
Transfer to Mine Development (a)
(95,790)
-
101,403
161,310
(a) Transfers to development assets & WIP: In July 2023, the group was granted a mining lease for the Tomingley Gold Extension Project. As a result of this, $74,527,000
in capitalised exploration expenditure has been transferred into mine development assets. This includes a historical impairment provision of $8,319,000. The remaining
$21,263,000 has been transferred into mine properties WIP. This includes the paste plant and ultra-fine grind upgrade.
Exploration and evaluation costs are carried forward on an area of interest basis. Costs are recognised and carried
forward where rights to tenure of the area of interest are current and either:
• the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
• activities in the area of interest have not at the reporting date reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active and significant
exploration and evaluation activities in, or in relation to, the area of interest are continuing.
111
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 13
Exploration and evaluation assets are tested for impairment when reclassified to development tangible or intangible
assets, or whenever facts or circumstances indicate impairment. An impairment loss is recognised for the amount
by which the exploration and evaluation assets carrying amount exceeds their recoverable amount. The recoverable
amount is the higher of the exploration and evaluation assets fair value less costs of disposal and their value in use.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest
are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for
impairment and then reclassified to mine properties under development. No amortisation is charged during the
exploration and evaluation phase.
Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
There may exist, on the group’s exploration properties, areas subject to claim under native title or containing sacred
sites or sites of significance to Aboriginal people. As a result, exploration properties or areas within tenements may
be subject to exploration or mining restrictions.
Note 13. Trade and other payables
2024
$’000
2023
$’000
Current liabilities
Trade payables
4,685
5,605
Other payables
19,059
17,903
23,744
23,508
Trade and other payables represent liabilities for goods and services provided to the group prior to the end of the
financial period which are unpaid. Current trade and other payables are unsecured and are usually paid within
30 days of recognition. Trade and other payables are presented in current liabilities unless payment is not due
within 12 months from the reporting date.
The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their
short-term nature.
Note 14. External borrowings
2024
$’000
2023
$’000
Current liabilities
Macquarie Facility
11,173
-
Other borrowings
4,971
7,371
16,144
7,371
Non-current liabilities
Macquarie Facility
30,819
-
Other borrowings
2,055
6,175
32,874
6,175
Refer to note 20 for further information on financial risk management.
112 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 15
Financing arrangements
2024
$’000
2023
$’000
Total facilities
Macquarie Leasing Facility
60,000
50,000
Used at the reporting date
Macquarie Leasing Facility
42,819
-
Unused at the reporting date
Macquarie Leasing Facility
17,181
50,000
Other borrowings are secured over the assets to which they relate, the carrying value of which exceeds the value
of the hire purchase liability. The group does not hold title to the equipment under the hire purchase pledged as
security.
On 21 February 2023, Alkane executed a finance Facility Agreement between Tomingley Gold Operations Pty Ltd
and Macquarie Bank Limited to develop the Tomingley Gold Extension Project. The terms to this facility are an
amendment to the existing facility agreement that was executed on 7 December 2020. The first debt drawdown is
permitted on the approval of the Mining Lease which was received in July 2023.
In April 2024, Alkane amended the Macquarie Finance Agreement to expand the facility to $60,000,000 and
drawdown $3,000/oz put options costing $7,819,000 following the increased reserve base at Roswell announced
27 February 2024. Total proceeds were $22,819,000 as part of this drawdown.
In June 2024, a further $20,000,000 was drawn down under this facility.
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
Note 15. Provisions
2024
$’000
2023
$’000
Current liabilities
Employee benefits
6,891
5,386
Non-current liabilities
Employee benefits
1,078
986
Rehabilitation
20,920
16,383
21,998
17,369
(i) Provisions
Provisions are recognised when the group has a present legal or constructive obligation, it is probable that an
outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised in finance charges.
113
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 15
(ii) Information about individual provisions and significant estimates
Employee benefits
The provision for employee benefits relates to the group’s liability for long service leave and annual leave.
The current portion of this liability includes all of the accrued annual leave. The entire amount of the provision of
$4,588,151 (2023: $3,622,000) is presented as current, since the group does not have an unconditional right to
defer settlement for any of these obligations. However, based on past experience, the group does not expect all
employees to take the full amount of accrued leave or require payment within the next 12 months. The following
amounts reflect leave that is not expected to be taken or paid within the next 12 months.
2024
$’000
2023
$’000
Current leave obligations expected to be settled after 12 months
1,663
1,517
The liability for long service leave not expected to vest within 12 months after the end of the period in which
the employees render the related service is recognised in the non-current provision for employee benefits and
measured at the present value of expected future payments to be made in respect of services provided up to
the end of the reporting period. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the
end of the reporting period on corporate bonds with terms and currencies that match as closely as possible, the
estimated future cash outflows. Where the group does not have an unconditional right to defer settlement for any
annual or long service leave owed, it is classified as a current provision regardless of when the group expects to
realise the provision.
Rehabilitation and mine closure
The group has obligations to dismantle and remove certain items of property, plant and equipment and to restore
and rehabilitate the land on which they sit.
A provision is raised for the estimated cost of settling the rehabilitation and restoration obligations existing at
balance date, discounted to present value using an appropriate pre-tax discount rate.
Where the obligation is related to an item of property, plant and equipment, its cost includes the present value of
the estimated costs of dismantling and removing the asset and restoring the site on which it is located. Costs that
relate to obligations arising from waste created by the production process are recognised as production costs in the
period in which they arise.
The discounted value reflects a combination of management’s assessment of the nature and extent of the work
required, the future cost of performing the work required, the timing of cash flows and the discount rate. An
increase in the provision due to the passage of time of was recognised in finance charges in the statement of profit
or loss and other comprehensive income of $522,000 (2023: $447,000).
The provisions are reassessed at least annually. A change in any of the assumptions used to determine the
provisions could have a material impact on the carrying value of the provision.
Movements in rehabilitation and mine closure provision during the financial year are set out below:
Rehabilitation and mine closure
2024
$’000
2023
$’000
Opening balance
16,383
15,252
Additional provision incurred
5,079
1,791
Expenditure during the year
-
(93)
Unwinding of discount
522
447
Change in estimate
(1,064)
(1,014)
20,920
16,383
114 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 16
Note 16. Issued capital
2024
Shares
2023
Shares
2024
$’000
2023
$’000
Ordinary shares – fully paid
603,490,487
601,574,030
223,319
222,224
Movements in ordinary share capital
Details
Date
Shares
$’000
Balance
1 July 2022
595,583,420
218,185
Shares issued on vesting of performance rights
2,901,458
2,032
Share issue
307,714
197
Share issue costs
-
(20)
Less: Deferred tax credit recognised directly into equity
-
(70)
Issue ordinary shares on 30 May 2023 for tenement
acquisition at $0.68
2,781,438
1,900
Balance
30 June 2023
601,574,030
222,224
Shares issued on vesting of performance rights
1,553,034
950
Share issue
363,423
228
Share issue costs
-
(9)
Less: Deferred tax credit recognised directly into equity
-
(74)
Balance
30 June 2024
603,490,487
223,319
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value
and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
2024
$’000
2023
$’000
Financial assets at fair value through other comprehensive income reserve
(18,595)
(10,869)
Hedging reserve – cash flow hedges
(1,449)
-
Share-based payments reserve
5,156
6,003
Demerger reserve
(70,300)
(70,300)
(85,188)
(75,166)
Note 17. Reserves
The following table shows a breakdown of the balance sheet line item ‘Reserves’ and the movements in these
reserves during the year. A description of the nature and purpose of each reserve is provided following the table.
115
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 17
Financial assets at fair value through other comprehensive income reserve
This OCI reserve is used to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income.
Hedging reserve – cash flow hedges
The reserve is used to recognise the effective portion of the gain or loss of cash flow hedge instruments that is
determined to be an effective hedge.
Share-based payments reserve
The reserve is used to recognise the grant date fair value of shares issued to directors and KMP, as well as the grant
date fair value of deferred rights granted but not yet vested.
Demerger reserve
The demerger reserve is used to recognise the gain on ASM demerger and demerger dividend.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Financial
assets – OCI
Reserve
$’000
Hedging
Reserve
$’000
Share-based
payments
Reserve
$’000
Demerger
Reserve
$’000
Total
$’000
Balance at 1 July 2022
4,431
-
5,229
(70,300)
(60,640)
Revaluation – gross
(16,140)
-
-
-
(16,140)
Transfer of Gain on disposal of equity investments
at fair value through other comprehensive income
to retained earnings
840
-
-
-
840
Share-based payments (note 28)
-
-
2,806
-
2,806
Employee share awards vested
-
-
(2,032)
-
(2,032)
Balance at 30 June 2023
(10,869)
-
6,003
(70,300)
(75,166)
Revaluation – gross
(7,099)
(2,070)
-
-
(9,169)
Deferred tax
-
621
-
-
621
Transfer of Gain on disposal of equity investments
at fair value through other comprehensive income
to retained earnings
(627)
-
-
-
(627)
Share-based payments (note 28)
-
-
103
-
103
Employee share awards vested
-
-
(950)
-
(950)
Balance at 30 June 2024
(18,595)
(1,449)
5,156
(70,300)
(85,188)
116 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 18
Note 18. Retained profits
2024
$’000
2023
$’000
Retained profits at the beginning of the financial year
152,939
111,329
Profit after income tax expense for the year
17,677
42,450
Transfer from other reserves
627
(840)
Retained profits at the end of the financial year
171,243
152,939
Note 19. Critical accounting judgements, estimates and assumptions
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies.
Carrying value of non-current assets
Non-current assets include capitalised exploration and evaluation expenditures and mine properties. The group has
capitalised significant exploration and evaluation expenditure on the basis either that such expenditure is expected
to be recouped through future successful development (or alternatively sale) of the areas of interest concerned or
on the basis that it is not yet possible to assess whether it will be recouped and activities are planned to enable that
determination.
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of
factors, including whether the group decides to exploit the related lease itself, or, if not, whether it successfully
recovers the related exploration asset through sale. The future recoverability of mine properties is dependent on
the generation of sufficient future cash flows from operations (or alternately sale). Factors that could impact the
future recoverability of exploration and evaluation and mine properties include the level of reserves and resources,
future technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices and exchange rates.
Estimates of recoverable quantities of resources and reserves also include assumptions requiring significant
judgment as detailed in the resource and reserve statements.
An impairment review is undertaken to determine whether any indicators of impairment are present. The group
has not recorded an impairment charge or reversal against either the gold operations cash generating units or
exploration assets in the current financial year.
The group recognises the physical and transitional impacts of climate change may affect its assets, productivity,
the markets in which it sells its products, and the jurisdictions in which it operates. The group continues to develop
its assessment of the potential impacts of climate change and the transition to low carbon economy.
Tomingley CGU assumptions
The group’s operations at Tomingley have been assessed to be a cash generating unit (CGU). This CGU was tested
for impairment:
• In July 2023, as required due to the transfer of exploration and evaluation expenditure into the CGU described
in note 12; and
• Again at 30 June 2024 due to management identifying impairment indicators, predominantly due to the net
assets of the group exceeding its market capitalisation.
117
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 19
The key assumptions used in the 30 June 2024 impairment test, which was determined using fair value less cost of
disposal (FVLCOD), included:
• Ounces mined in the current life-of-mine plan (401koz) were valued using a discounted cash flow model.
• Ounces not included in the life of mine plan (778koz) were valued based on multiples determined from recent
transactions.
• Pricing assumptions were generated from current hedging obligations, current forward rates (adjusted for
inflation) and mean analyst consensus forecasts, with hedging limited to 50% of expected production. The gold
price came out to an average of A$3,042/oz.
• Capital and operating expenditures were modelled on a real basis and were based on the current life-of-mine plan.
• A discount rate of 8% was used.
There was sufficient headroom to conclude that no impairment is required for the period. Reasonably possible
negative changes in the assumptions set out above could lead to headroom being eliminated, including a 5%
decrease in spot gold price estimates, a 7% increase in operating expenditures and a 20% increase in capital
expenditure required to complete the Tomingley Gold Extension Project.
Depreciation of property, plant and equipment
Non-current assets include property, plant and equipment. The group reviews the useful lives of depreciable asset
at each reporting date or when there is a change in the pattern in which the asset’s future economic benefits are
expected to be consumed, based on the expected utilisation of the assets. Depreciation and amortisation are
calculated using the units of production method based on ounces of gold produced.
Rehabilitation and mine closure provisions
These provisions represent the discounted value of the present obligation to restore, dismantle and rehabilitate
certain items of property, plant and equipment and to rehabilitate exploration and mining leases. The discounted
value reflects a combination of management’s assessment of the nature and extent of the work required, the future
cost of performing the work required, the timing of cash flows and the discount rate. Changes to one or more of
these assumptions is likely to result in a change to the carrying value of the provision and the related asset or a
change to profit and loss in accordance with the group’s accounting policy stated in note 15.
Net realisable value and classification of inventory
The group’s assessment of the net realisable value and classification of its inventory requires the use of estimates,
including the estimation of the relevant future commodity or product price, future processing costs and the likely
timing of sale.
Share-based payments
The group measures the cost of equity settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The related assumptions are set out in note 28.
The accounting estimates and assumptions relating to equity settled share-based payments would have no impact
on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses
and equity.
118 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated
entity recognises liabilities for anticipated tax audit issues based on the consolidated entity’s current understanding
of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such
differences will impact the current and deferred tax provisions in the period in which such determination is made.
In addition, the group has recognised deferred tax assets relating to carried forward tax losses to the extent there
are sufficient taxable temporary differences (deferred tax liabilities) relating to the same taxation authority against
which the unused tax losses can be utilised. Utilisation of the tax losses also depends on the ability of the entity to
satisfy certain tests at the time the losses are recouped. Refer to note 4 for the current recognition of tax losses.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion
of the mineral resources. Key judgements are applied in considering costs to be capitalised, which includes
determining expenditures directly related to these activities and allocating overheads between those that are
expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through
successful development or sale of the relevant mining interest. Factors that could impact the future commercial
production at the mine include the level of reserves and resources, future technology changes, which could impact
the cost of mining, future legal changes and changes in commodity prices.
Where economic recoverable reserves for an area of interest have been identified, and a decision to develop has
occurred, capitalised expenditure is classified as mine development.
To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in
the period in which the determination is made.
Note 20. Financial risk management
Financial risk management objectives
The group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The consolidated entity’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the consolidated entity. The group uses derivative financial instruments including gold forward and
gold put option contracts to mitigate certain risk exposures.
This note presents information about the group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Management monitors and manages the financial risks relating to the operations of the group through
regular reviews of the risks and mitigating strategies.
119
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
(a) Market risk
(i) Foreign currency risk
The group’s sales revenue for gold are largely denominated in Australian dollars, the revenues are generated using
a gold price denominated in US dollars, hence the group’s cash flow is significantly exposed to movement in the
A$:US$ exchange rate. The group mitigates this risk through the use of derivative instruments, including but not
limited to a combination of Australian dollar denominated gold forward contracts and put options to hedge a
portion of future gold sales.
The Australian dollar denominated gold forward contracts are entered into and continue to be held for the purpose
of physical delivery of gold bullion. As a result, the contracts are not recorded in the financial statements. Refer to
note 25 for further information.
(ii) Commodity price risk
The group’s sales revenues are generated from the sale of gold. Accordingly, the group’s revenues are exposed
to commodity price fluctuations, primarily gold. The group mitigates this risk primarily through the use of a
combination of Australian dollar denominated options and physical gold forward contracts.
The intrinsic value of gold options is determined with reference to the relevant spot market exchange rate.
The differential between the contracted strike rate and the discounted spot market exchange rate is defined as
the time value. It is discounted, where material. The changes in the time value of the options that relate to hedged
items are deferred in the cash flow hedge reserve.
Options
2024
2023
Carrying amount ($’000, note 9)
5,748
-
Notional amount (oz)
140,799
-
Strike price/oz
3,000
-
Maturity dates
July 2024 to June 2027
-
Hedge Ratio
1:1
-
Change in intrinsic value of outstanding hedging instruments since inception
of the hedge
-
-
Change in value of hedged item used to determine hedge ineffectiveness
-
-
The extent of commodity price risk mitigated through physical gold forward sales contracts (which are not
derivatives) is disclosed in note 25(b).
120 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
(iii) Interest rate risk
The group’s main interest rate risk arises through its cash and cash equivalents and other financial assets held
within financial institutions. The group minimises this risk by utilising fixed rate instruments where appropriate.
Summarised market risk sensitivity analysis:
Interest rate risk
Impact on profit/(loss) after tax
30 June 2024
30 June 2023
Carrying
amount
$’000
+100BP
$’000
-100BP
$’000
Carrying
amount
$’000
+100BP
$’000
-100BP
$’000
Financial assets
Cash and cash equivalents
45,519
455
(455)
80,291
562
(562)
Receivables*
3,849
-
-
240
-
-
Other financial assets
13,888
138
(138)
13,766
96
(96)
Financial liabilities
Trade and other payables
23,744
-
-
37,207
-
-
Macquarie Facility
42,819
428
(428)
-
-
-
Total increase/(decrease) in profit
-
1,021
(1,021)
-
658
(658)
* The receivables balance excludes prepayments and tax balances which do not meet the definition of financial assets and liabilities.
There is no exposure to foreign exchange risk or commodity price risk for the above financial assets and liabilities.
(b) Credit risk
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses
to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These
provisions are considered representative across all customers of the consolidated entity based on recent sales
experience, historical collection rates and forward-looking information that is available.
In determining the recoverability of a trade or other receivable using the expected credit loss model, the group
performs a risk analysis considering the type and age of the outstanding receivables, the creditworthiness of the
counterparty, contract provisions, letter of credit and timing of payment.
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit
exposure to customers, including outstanding receivables and committed transactions.
(i) Risk management
The group limits its exposure to credit risk in relation to cash and cash equivalents and other financial assets by only
utilising banks and financial institutions with acceptable credit ratings above a-/A3. Alkane currently transacts with
Macquarie Bank and Westpac Bank.
(ii) Credit quality
Tax receivables and prepayments do not meet the definition of financial assets. The group assesses the credit
quality of the customer, taking into account its financial position, past experience and other factors.
121
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 20
Contractual maturities of financial
liabilities
Less than
12 months
$’000
Between 1
and 2 years
$’000
Between 2
and 3 years
$’000
Over 3 years
$’000
Total
contractual
cash flows
$’000
Carrying
amount
$’000
At 30 June 2024
Trade and other payables
23,744
-
-
-
23,744
23,744
Macquarie Facility
14,880
29,840
2,559
-
47,279
41,992
Other Borrowings
5,236
1,947
155
-
7,338
7,026
Total
43,860
31,787
2,714
-
78,361
72,762
At 30 June 2023
Trade and other payables
23,508
-
-
-
23,508
23,508
Other Borrowings
7,873
4,763
1,574
-
14,210
13,546
Total
31,381
4,763
1,574
-
37,718
37,054
(c) Liquidity risk
Liquidity risk is the risk that the group will not be able to meet its financial liabilities as they fall due. The group’s
approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the group’s reputation. The Board of Directors monitors liquidity levels on an ongoing basis.
The group’s financial liabilities maturity ranges from one month to three years.
The fair values of financial assets and liabilities, together with their carrying amounts in the balance sheet, for the
consolidated entity are as follows:
Liquidity table
2024
$’000
Current Assets
Cash and cash equivalents
45,519
Trade and other receivables
3,848
Inventory
22,241
Total current assets
71,608
Current Liabilities
Trade and other payables
(23,744)
Current tax liabilities
(5,134)
External borrowings
(16,144)
Provisions
(6,891)
Other liabilities
(445)
Total current liabilities
(52,358)
Working Capital
19,250
The tables below analyse the group’s financial liabilities into relevant maturity groupings based on their contractual
maturities.
122 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 21
Note 21. Capital risk management
The group’s objectives when managing capital are to safeguard the ability to continue as a going concern, so that
it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may
return capital to shareholders, pay dividends to shareholders, issue new shares or sell assets.
Note 22. Key management personnel disclosures
The aggregate compensation made to directors and other members of KMP of the consolidated entity is set out below:
2024
$
2023
$
Short-term employee benefits
2,327,837
2,327,976
Post-employment benefits
139,921
134,661
Long-term benefits
98,767
66,738
Share-based payments
887,428
1,250,278
3,453,953
3,779,653
2024
$
2023
$
Audit services – PricewaterhouseCoopers
Audit or review of the financial statements
230,934
204,000
Other services – PricewaterhouseCoopers
Other advisory services
18,003
40,000
248,937
244,000
Note 23. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by PricewaterhouseCoopers,
the auditor of the company:
Note 24. Contingent liabilities
The group has entered into forward gold sales contracts which are not accounted for on the balance sheet.
A contingent liability of $73,979,000 (2023: Liability $32,020,000) existed at the balance date in the event the
contracts are not settled by the physical delivery of gold.
Note 25. Commitments
(a) Exploration and mining lease commitments
In order to maintain current rights of tenure to exploration and mining tenements, the group will be required to
outlay the amounts disclosed in the below table. These amounts are discretionary, however if the expenditure
commitments are not met then the associated exploration and mining leases may be relinquished.
2024
$’000
2023
$’000
Within one year
2,978
1,022
123
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 26
(b) Physical gold delivery commitments
As part of its risk management policy, the group enters into derivatives including gold forward contracts and gold
put options to manage the gold price of a proportion of anticipated gold sales.
Alkane purchased gold forward sales and put options as part of a risk mitigation strategy on any potential
downward price pressure while Tomingley was processing the low-grade stockpiles during the year.
The gold forward sales contracts disclosed below did not meet the criteria of financial instruments for accounting
purposes on the basis that they met the normal purchase/sale exemption because physical gold would be delivered
into the contract. Accordingly, the contracts were accounted for as sale contracts with revenue recognised in the
period in which the gold commitment was met. The balances in the table below relate to the value of the contracts
to be delivered into by transfer of physical gold.
Gold for physical
delivery
(oz)
Contracted gold sale
price per ounce
($)
Value of
committed sales
$’000
30 June 2024
Fixed forward contracts
Within one year
47,400
2,797
132,584
One to five years
66,900
2,856
191,092
30 June 2023
Fixed forward contracts
Within one year
25,700
2,819
72,465
One to five years
86,800
2,819
244,745
(c) Capital commitments
Capital commitments committed for the year at the end of the reporting period but not recognised as liabilities
amounted to $48,435,000 (2023: $23,473,000).
Note 26. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect,
the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in
future financial years.
Note 27. Related party transactions
Parent entity
Alkane Resources Ltd is the parent entity of the group.
Joint operations
Interests in joint operations are set out in note 31.
Key management personnel
Disclosures relating to key management personnel are set out in note 22 and the remuneration report included in
the directors’ report.
124 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 28
Transactions with other related parties
Nuclear IT is a director-related entity where David Chalmers’ son is a director of the company. David Chalmers does
not have any financial interest, is not an office holder or hold any other relationship with Nuclear IT.
Nuclear IT provides information technology consulting services to the group which includes the coordination
of the purchase of information technology hardware and software which are typically routine. These terms are
documented in a service level agreement and represent normal commercial terms.
2024
$
2023
$
Purchase of computer hardware and software
489,235
496,165
Consulting fees and services
447,134
167,514
Total
936,369
663,679
Note 28. Share-based payments
Share-based compensation benefits are provided to employees via the group’s incentive plans. The incentive plans
consist of short-term and long-term incentive plans for executive directors and other executives and the employee
share scheme for all other employees. Information relating to these plans is set out in the remuneration report and
below.
The fair value of rights granted under the short-term and long-term incentive plans is recognised as an employee
benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by
reference to the fair value of the rights granted, which includes any market performance conditions and the
impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting
conditions.
Non-market vesting conditions and the impact of service conditions are included in assumptions about the number
of rights that are expected to vest. The total expense is recognised over the vesting period, which is the period
over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises
its estimates of the number of rights that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in the statement of profit or loss and
other comprehensive income, with a corresponding adjustment to equity.
The initial estimate of fair value for market based and non-vesting conditions is not subsequently adjusted for
differences between the number of rights granted and number of rights that vest.
When the rights are exercised, the appropriate number of shares are transferred to the employee. The proceeds
received net of any directly attributable transaction costs are credited directly to equity.
Under the employee share scheme, shares issued by the group to employees for no cash consideration vest
immediately on grant date. On this date, the market value of the shares issued is recognised as an employee
benefits expense with a corresponding increase in equity.
The fair value of deferred shares granted to employees for nil consideration under the employee share scheme is
recognised as an expense over the relevant service period, being the year to which the incentive relates and the
vesting period of the shares. The fair value is measured using the Monte Carlo valuation method for long-term
incentive plans and Black-Scholes valuation method for short-term incentive plans at the grant date of the shares
and is recognised in equity in the share-based payment reserve. The number of shares expected to vest is estimated
based on the non-market vesting conditions. The estimates are revised at the end of each reporting period and
adjustments are recognised in profit or loss and the share-based payment reserve.
125
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 28
Executive directors and other executives
The company’s remuneration framework is set out in the remuneration report, including all details of the
performance rights and share appreciation rights plans, the associated performance hurdles and vesting criteria.
Participation in the plans is at the discretion of the Board of Directors and no individual has a contractual right
to participate in the plans or to receive any guaranteed benefits. Participation is currently restricted to senior
executives within the group.
The following tables illustrate the number and weighted average fair value of, and movements in, share rights
during the year.
2024
2023
Number of
performance rights
Weighted average
fair value
Number of
performance rights
Weighted average
fair value
Performance Rights
Outstanding at the beginning of the year
7,070,519
$0.52
7,106,162
$0.54
Issued during the year
4,147,784
$0.64
3,633,835
$0.68
Vested during the year
(958,215)
$0.67
(2,901,458)
$0.53
Lapsed/Cancelled during the year
(1,492,626)
$0.75
(768,020)
$1.41
Outstanding at the end of the year
8,767,462
$0.54
7,070,519
$0.52
The number of Performance Rights to be granted is determined by the Remuneration Committee with reference
to the fair value of each Performance Right which is generally the volume weighted average price for the month
preceding the start of the performance period. This will differ from the fair value reported in the table above which
is determined at the time of grant.
Long-term incentive scheme (LTI)
The following table lists the inputs to the models used.
Grant date
Performance hurdle
Dividend
yield
%
Expected stock
volatility
%
Risk free
rate
%
Expected
life years
Weighted average share
price at grant date
$
17/11/2021
Market condition
-
72
0.87
2.7
1.08
17/10/2022
Market condition
-
65
3.50
2.8
0.90
28/11/2022
Market condition
-
64
3.18
2.8
0.92
02/10/2023
Market condition
-
56
4.08
2.7
0.63
21/11/2023
Market condition
-
54
4.11
2.7
0.62
The expected volatility is based on the historic market price over a historical period aligned to the life of the rights,
immediately prior to valuation date.
The Total Shareholder Return (TSR) Performance Condition attached to the Performance Rights granted under the
FY24 LTI is considered a market-based hurdle under AASB 2 and should be considered when estimating the fair
value. The service conditions attached to the awards are deemed non-market-based hurdles. Accordingly, a Monte
Carlo simulation-based model has been used to test the likelihood of achieving the TSR hurdle when estimating the
fair value.
126 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 29
Short-term incentive scheme (STI)
Under the group’s short-term incentive (STI) scheme, executives and senior management receive rights to deferred
shares based on the annual STI achieved. The rights are granted at the end of the performance period and vest
one year after the grant date. They automatically convert into one ordinary share each on vesting at an exercise
price of nil. There is no entitlement to dividends or voting in relation to the deferred shares during the restricted
period. If employment ceases during this period, the rights will be forfeited, except in limited circumstances that
are approved by the Board. The number of rights to be granted is determined based on the share price at the date
of grant.
The vested portion of FY22 STI were accounted for in the prior year based on the estimated value at the reporting
date. The value was adjusted based on the final value determined in the current year.
STI awards for the executive team in the 2023 financial year FY23 STI were based on the scorecard measures and
weighting as disclosed, with the estimated value of the grant determined at the reporting date.
Plan
Offer
Hurdle
Valuation Model
Grant Date
Fair Value
FY23 STI
Executive Directors
Service
Black-Scholes
21/11/2023
$0.64
FY23 STI
Other Executives
Service
Black-Scholes
13/10/2023
$0.61
Expenses arising from share-based payment transactions
2024
$’000
2023
$’000
Performance rights
103
2,806
Employee share scheme
228
197
331
3,003
Note 29. Earnings per share
2024
$’000
2023
$’000
Earnings per share for profit from continuing operations
Profit after income tax attributable to the owners of Alkane Resources Ltd
17,677
42,450
Cents
Cents
Basic earnings per share
2.93
7.10
Diluted earnings per share
2.89
7.00
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
602,915,175
598,215,343
Adjustments for calculation of diluted earnings per share:
Performance rights
9,680,740
7,820,251
Weighted average number of ordinary shares used in calculating diluted earnings per share
612,595,915
606,035,594
127
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 30
Note 30. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
$’000
2023
$’000
Loss after income tax
(5,686)
(7,432)
Total comprehensive loss
(5,686)
(7,432)
Balance sheet
Parent
2024
$’000
2023
$’000
Total current assets
74,180
69,796
Total assets
173,825
191,466
Total current liabilities
9,205
11,858
Total liabilities
37,229
42,050
Equity
Issued capital
223,320
222,224
Financial assets at fair value through other comprehensive income reserve
(18,595)
(10,869)
Share-based payments reserve
5,156
6,003
Demerger reserve
(70,300)
(70,300)
Retained profits/(accumulated losses)
(2,985)
2,358
Total equity
136,596
149,416
Determining the parent entity financial information
The financial information for the parent entity has been prepared on the same basis as the consolidated financial
statements, except as set out below.
(i) Tax consolidation legislation
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. Refer to note 4 for further details.
(ii) Share-based payments rights
The grant by the company of rights to equity instruments to the employees of subsidiary undertakings in the
group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase to
investment in subsidiary undertakings, with a corresponding credit to equity.
128 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 31
(iii) Investment in subsidiaries
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Capital commitments – Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 (2023: $nil).
Note 31. Interests in subsidiaries
The group’s subsidiaries at 30 June 2024 are set out below. Unless otherwise stated, they have share capital
consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership interests
held equals the voting rights held by the group. The state of incorporation or registration is also their principal place
of business.
Name of entity
Principal place of business /
Country of incorporation
Ownership interest
2024
%
2023
%
Tomingley Holdings Pty Ltd
New South Wales
100
100
Tomingley Gold Operations Pty Ltd
New South Wales
100
100
Mitchell Creek Mining Holdings Pty Ltd
New South Wales
100
100
Mitchell Creek Mining Pty Ltd
New South Wales
100
100
Note 32. Deed of cross-guarantee
The following group entities have entered into a deed of cross-guarantee. Under the deed of cross-guarantee, each
body has guaranteed that the debts to each creditor of each other body which is a party to the deed will be paid in
full in accordance with the deed:
• Alkane Resources Limited (the Holding Entity)
• Tomingley Holdings Pty Ltd and Tomingley Gold Operations Pty Ltd (the wholly owned subsidiaries, which are
eligible for the benefit of the ASIC Instrument)
By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare financial
statements and directors’ report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
The above companies represent a ‘Closed Group’ for the purposes of the Corporations Instrument, and as there are
no other parties to the deed of cross-guarantee that are controlled by Alkane Resources Ltd, they also represent the
‘Extended Closed Group’.
The statement of profit or loss and other comprehensive income and balance sheet are substantially the same as
the consolidated entity as stated in the Consolidated Statement of Profit or Loss and Other Comprehensive Income
and therefore have not been separately disclosed.
129
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 33
Note 33. Reconciliation of profit after income tax to net cash from
operating activities
2024
$’000
2023
$’000
Profit after income tax expense for the year
17,677
42,450
Adjustments for:
Depreciation and amortisation
36,143
36,108
Share-based payments
331
3,003
Exploration costs provided for or written off
3
497
Finance charges
1,963
433
Profit on sale of asset
(110)
–
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
1,377
(1,960)
Increase in inventories
(335)
(3,954)
Movement in provision
1,852
1,328
Increase in trade and other payables
1,213
205
Increase in deferred tax liabilities
608
17,436
Increase in derivatives
(7,819)
–
Net cash from operating activities
52,903
95,546
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
2024
$’000
2023
$’000
Cash and cash equivalents
45,519
80,291
Borrowings – repayable within one year
(17,375)
(7,371)
Borrowings – repayable after one year
(32,874)
(6,175)
Net (Debt)/Cash
(4,730)
66,745
Cash
$’000
Borrowings repayable
within one year
$’000
Borrowings repayable
after one year
$’000
Net cash
$’000
Opening net cash
80,291
(7,371)
(6,175)
66,745
Proceeds from borrowings
44,482
(12,676)
(31,806)
-
Repayment of borrowings
(8,184)
3,077
5,107
-
Non-cash accruals
-
(405)
-
(405)
All other cash flows
(71,070)
-
-
(71,070)
Closing net cash
45,519
(17,375)
(32,874)
(4,730)
130 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
Note 34. Material accounting policy information
The accounting policies that are material to the consolidated entity are set out either in the respective notes or below.
The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the consolidated entity.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations
Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for certain financial
assets and liabilities which are measured at fair value.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed in note 19.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in note 30.
Tax consolidated legislation
Alkane Resources Ltd and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation.
The head entity, Alkane Resources Ltd, and the controlled entities in the Tax Consolidated Group account for their
own current and deferred tax amounts. These tax amounts are measured as if each entity in the Tax Consolidated
Group continues to be a standalone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Alkane Resources Ltd also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the Tax Consolidated Group.
131
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
The entities have also entered into a tax funding agreement under which the wholly owned entities fully
compensate Alkane Resources Ltd for any current tax payable assumed and are compensated by Alkane Resources
Ltd for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits
that are transferred to Alkane Resources Ltd under the tax consolidation legislation. The funding amounts are
determined by reference to the amounts recognised in the wholly owned entities financial statements.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
current amounts receivable from or payable to other entities in the group.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alkane Resources
Ltd (‘company’ or ‘parent entity’) as at 30 June 2024 and the results of all subsidiaries for the year then ended.
Alkane Resources Ltd and its subsidiaries together are referred to in these financial statements as the ‘consolidated
entity’ or the ‘group’.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-
consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated
entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity.
The financial statements are presented in Australian dollars, which is Alkane Resources Ltd’s functional and
presentation currency.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity’s incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of
a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which
they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised
its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated
in the financial statements under the appropriate classifications.
132 Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of
the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based
on both the business model within which such assets are held and the contractual cash flow characteristics of the
financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no
reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such
upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity’s assessment at the end of each reporting period as to whether
the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses
that is attributable to a default event that is possible within the next 12 months. Where a financial asset has
become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is
based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured
on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is
recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases,
the loss allowance reduces the asset’s carrying value with a corresponding expense through profit or loss.
Impairment of non-financial assets
The group assesses at the end of each reporting period whether there is any indication that an asset, or a group
of assets, is impaired (excluding exploration and evaluation assets, refer to note 12 for impairment policy for
exploration and evaluation assets). An asset or a group of assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash
flows of the asset or group of assets that can be reliably estimated.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
133
Alkane Resources Annual Report 2024
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
Goods and Services Tax (GST) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the balance
sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to, the tax authority are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary
shares; by
• the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
• the profit attributable to owners of the company, excluding any costs of servicing equity, and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
Derivatives and hedging activities
Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are
subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent
changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature
of the item being hedged. The group designates certain derivatives as either:
• hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges);
• hedges of a particular risk associated with the cash flows of recognised assets and liabilities and highly probable
forecast transactions (cash flow hedges); or
• hedges of a net investment in a foreign operation (net investment hedges).
At inception of the hedge relationship, the group documents the economic relationship between hedging
instruments and hedged items including whether changes in the cash flows of the hedging instruments are
expected to offset changes in the cash flows of hedged items. The group documents its risk management objective
and strategy for undertaking its hedge transactions.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges
is recognised in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is
recognised immediately in profit or loss, within other gains/(losses). Where option contracts are used to hedge
forecast transactions, the group designates only the intrinsic value of the options as the hedging instrument.
Gains or losses relating to the effective portion of the change in intrinsic value of the options are recognised in the
cash flow hedge reserve within equity. The changes in the time value of the options that relate to the hedged item
(‘aligned time value’) are recognised within OCI in the cash flow hedge reserve within equity. Amounts accumulated
in equity are reclassified in the periods when the hedged item affects profit or loss.
When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time
remains in equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset such as
inventory. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred
costs of hedging that were reported in equity are immediately reclassified to profit or loss.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance
with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - NOTE 34
Alkane Resources Annual Report 2024
134
135
Alkane Resources Annual Report 2024
Consolidated Entity Disclosure Statement
As at 30 June 2024
Entity name
Entity type
Place formed /Country
of incorporation
Ownership interest
Tax residency
Alkane Resources Ltd
Body Corporate
Australia
N/A
Australia
Tomingley Holdings Pty Ltd
Body Corporate
Australia
100.00%
Australia
Tomingley Gold Operations
Pty Ltd
Body Corporate
Australia
100.00%
Australia
Mitchell Creek Mining
Holdings Pty Ltd
Body Corporate
Australia
100.00%
Australia
Mitchell Creek Mining
Pty Ltd
Body Corporate
Australia
100.00%
Australia
Basis of preparation
This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act
2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial
year in accordance with AASB 10 Consolidated Financial Statements.
Determination of tax residency
Section 295 (3A)(vi) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax
Assessment Act 1997. The determination of tax residency involves judgement as there are different interpretations
that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
• Australian tax residency – The consolidated entity has applied current legislation and judicial precedent,
including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR 2018/5
• Foreign tax residency – Where necessary, the consolidated entity has used independent tax advisers in foreign
jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation has been
complied with (see section 295(3A)(vii) of the Corporations Act 2001).
FINANCIAL REPORT CONSOLIDATED ENTITY DISCLOSURE STATEMENT
136 Alkane Resources Annual Report 2024
Directors’ declaration
In the directors’ opinion:
• the financial statements and notes set out on pages 96 to 134 are in accordance with the Corporations Act 2001
including:
(a)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date; and
• the financial statements and notes also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in note 34 to the financial statements;
• there are reasonable grounds to believe that Alkane Resources Limited will be able to pay its debts as and when
they become due and payable;
• at the date of this declaration, there are reasonable grounds to believe that the members of the Extended
Closed Group will be able to meet any obligations or liabilities to which they are, or may become, subject by
virtue of the deed of cross guarantee described in note 32 to the financial statements; and
• the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer
required by section 295A of the Corporations Act 2001.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors.
On behalf of the directors
N P Earner
Managing Director
26 August 2024
Perth
FINANCIAL REPORT DIRECTORS’ DECLARATION
137
Alkane Resources Annual Report 2024
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report
To the members of Alkane Resources Ltd
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Alkane Resources Ltd (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
•
the consolidated balance sheet as at 30 June 2024
•
the consolidated statement of changes in equity for the year then ended
•
the consolidated statement of cash flows for the year then ended
•
the consolidated statement of profit or loss and other comprehensive income for the year then
ended
•
the notes to the consolidated financial statements, including material accounting policy
information and other explanatory information
•
the consolidated entity disclosure statement as at 30 June 2024
•
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
138 Alkane Resources Annual Report 2024
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Audit scope
Key audit matters
•
Our audit focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
•
Amongst other relevant topics, we communicated
the following key audit matters to the Audit and Risk
Committee:
−
Carrying amount of the Tomingley CGU
−
Capitalisation of mining costs and amortisation
These are further described in the Key audit matters
section of our report.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
Key audit matter
How our audit addressed the key audit matter
Carrying amount of the Tomingley CGU (Refer to note
11 and 19)
During the year, the Group reclassified $95.8m (net of
$8.3m historical impairment) from capitalised
exploration and evaluation into property, plant and
equipment after the Group was granted a mining lease
for the Tomingley Gold Extension Project (TGEP), part
of the Group’s Tomingley cash generating unit (CGU).
In line with Australian Accounting Standard AASB 6
Exploration for and Evaluation of Mineral Resources an
impairment test was performed at this time.
We performed the following procedures, amongst
others, over the impairment tests performed by the
Group during the financial year:
•
Evaluated whether the Group’s determination
of CGUs was consistent with our
understanding of the nature of the Group’s
operations.
•
Assessed the objectivity and competence of
internal experts who assisted in developing
the life of mine plan which informs
management’s Fair Value calculations.
•
Compared the forecast cash flows used in the
30 June 2024 impairment model to the most
up to date budgets and life-of-mine plans.
139
Alkane Resources Annual Report 2024
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Key audit matter
How our audit addressed the key audit matter
At 30 June 2024 the Group's net assets exceeded its
market capitalisation. Management concluded that this
was an indicator that the Tomingley CGU may be
impaired and that an impairment test should be
performed. Accordingly, management also performed
an impairment test at 30 June 2024.
The recoverable amount of the Tomingley Gold
Operations CGU was determined using a fair value
less cost of disposal (Fair Value) methodology.
This was a key audit matter due to the judgement
exercised by the Group in calculating the recoverable
amount of the CGU and the significance to the
financial statements of the non-current assets within
the Tomingley CGU.
•
Together with PwC valuations experts,
considered the methodologies and key
assumptions adopted in management’s Fair
Value calculations for appropriateness
including assessing:
o
The forecast gold price and foreign
exchange rate assumptions, by
comparing them to independent
consensus data,
o
The discount rate used, by assessing
the cost of capital for the Group and
comparing the rate to market data
and industry research, and
o
The appropriateness of
management’s estimate of the value
of residual reserves and resources to
comparable external data points.
•
Evaluated whether significant assumptions and
judgements were consistent with each other
and with those used in the Group’s other
accounting estimates, based on knowledge
obtained during the audit.
•
Tested the mathematical accuracy of the
calculations of Fair Value and assessed
whether they had been performed in a manner
consistent with the valuation technique
applied.
•
Assessed the reasonableness of the
disclosures made in the financial report against
the requirements of Australian Accounting
Standards.
140 Alkane Resources Annual Report 2024
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
Key audit matter
How our audit addressed the key audit matter
Capitalisation of Mining Costs and amortisation
(Refer to note 11)
Costs were incurred during the year at Tomingley to
expand access to mineral reserves and resources,
including in relation to the TGEP, and to provide
enhanced facilities for extracting, treating, gathering,
transporting and storing the minerals.
These development expenditures are capitalised to the
extent that they are necessary to bring new assets to
commercial production or enhance the productivity or
capacity of existing assets and can be directly
attributable to or capable of being reasonably allocated
to those activities.
This was a key audit matter due to the judgement
involved in allocating certain of the expenditure items
between mining and development activities given the
geographic proximity of the operations and the similar
nature of the relevant costs, as well as the impact on
the amortisation profile of mine properties across
Tomingley original and expansion operations.
In assessing the appropriateness of capitalisation of
development costs and associated amortisation we
have performed the following procedures, amongst
others:
•
Evaluated management’s process of
determining whether costs should be
capitalised or expensed and the method of
allocation of costs between operating and
capital as well as between the two operations.
•
Tested, on a sample basis, management’s
controls over the allocation of costs to specific
projects and monitoring of actual capitalised
costs against budget.
•
Performed detailed testing, on a sample basis,
of capitalised mine development costs.
•
Considered if mine development costs have
been capitalised in accordance with the
accounting policy.
•
Assessed management’s determination of
which assets are ready for use and therefore
depreciation should commence.
•
Recalculated the amortisation of mine
properties for both legacy Tomingley
operations and TGEP.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2024, but does not include the
financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other
information we obtained included the Corporate Directory and Directors' Report. We expect the
remaining other information to be made available to us after the date of this auditor's report.
Our opinion on the financial report does not cover the other information and we do not and will not
express an opinion or any form of assurance conclusion thereon through our opinion on the financial
report. We have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
141
Alkane Resources Annual Report 2024
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
142 Alkane Resources Annual Report 2024
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the remuneration report of Alkane Resources Ltd for the year ended 30 June 2024
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Ian Campbell
Perth
Partner
26 August 2024
FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
143
Alkane Resources Annual Report 2024
ADDITIONAL
INFORMATION
144 Alkane Resources Annual Report 2024
Additional information required by Australian Securities Exchange Ltd and not shown elsewhere in this report is as
follows. The information is current as at 18 September 2024.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Twenty Largest Shareholders
The names of the 20 largest holders of quoted ordinary shares are:
Listed ordinary shares
Number of shares
Percentage of
ordinary shares
1
HSBC Custody Nominees (Australia) Limited
49,007,119
8.11%
2
Abbotsleigh Pty Ltd
40,232,105
6.65%
3
Citicorp Nominees Pty Limited
38,294,359
6.33%
4
J P Morgan Nominees Australia Pty Limited
18,560,361
3.07%
5
Magnabay Pty Ltd
16,466,667
2.72%
5
Lilycreek Pty Ltd
16,466,667
2.72%
6
Auburnvalley Pty Ltd
16,466,666
2.72%
7
ILG Estate Co 3 Pty Ltd
13,311,748
2.20%
8
ILG Estate Co 4 Pty Ltd
13,311,747
2.20%
8
ILG Estate Co 1 Pty Ltd
13,311,747
2.20%
8
ILG Estate Co 2 Pty Ltd
13,311,747
2.20%
9
BNP Paribas Nominees Pty Ltd
10,321,388
1.71%
10
Abbotsleigh Pty Ltd
8,600,000
1.42%
11
BNP Paribas Nominees Pty Ltd
5,861,004
0.97%
12
Garrett Smythe Ltd
5,601,125
0.93%
13
Leefab Pty Ltd
5,560,718
0.92%
14
BNP Paribas Noms Pty Ltd
5,398,549
0.89%
15
Ed-Ne Pty Ltd
5,348,450
0.88%
16
Gardenway Proprietary Limited
5,180,918
0.86%
17
Abbotsleigh Pty Ltd
5,000,000
0.83%
18
Abbotsleigh Pty Ltd
4,149,183
0.69%
19
Fyvie Pty Ltd
3,450,000
0.57%
20
SMAAS Ventures 2 Pty Ltd
3,131,522
0.52%
316,343,790
52.32%
Ordinary shares
Number of holders
Number of shares
Percentage of
ordinary shares
1 - 1,000
1,634
972,115
0.16%
1,001 - 5,000
3,552
9,872,180
1.63%
5,001 - 10,000
1,700
13,311,943
2.20%
10,001 - 100,000
2,971
96,993,770
16.04%
100,001 and over
529
483,429,762
79.96%
10,386
604,579,770
100.00%
The number of equity security holders holding less than
a marketable parcel of securities are:
1,827
1,179,577
0.20%
Shareholder Information
ADDITIONAL INFORMATION SHAREHOLDER INFORMATION
145
Alkane Resources Annual Report 2024
Substantial Shareholders
The names of substantial shareholders who have notified the company in accordance with section 671B of the
Corporations Act 2001 are:
Number of shares
Ian Jeffrey Gandel
110,128,277
Chapelgreen Pty Ltd
53,746,000
Voting Rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
Unquoted Securities
At 18 September 2024, the company had the following unlisted securities on issue:
Holders of 20% or more of the class
Class
Number of
Securities
Number of
Holders
Holder Name
Number of
Securities
Employee Performance Rights LTI FY2023
2,675,620
8
ED-NE Pty Ltd
1,088,497
Employee Performance Rights STI FY2023
480,937
2
ED-NE Pty Ltd
359,101
Leefab Pty Ltd
121,836
Employee Performance Rights LTI FY2024
2,991,197
8
ED-NE Pty Ltd
1,146,657
Alkane’s Corporate Governance Statement is available on our website, along with the Board charter and
details of Board sub-committees. Also listed are key policies and procedures, including those pertaining to
appointment and independence of directors, diversity, code of conduct, risk management, and anti-bribery
and corruption.
https://www.alkane.com.au/company/governance/
Corporate Governance Statement
ADDITIONAL INFORMATION SHAREHOLDER INFORMATION
Schedule of mining tenements – as at 30 June 2024
Project/Location
Tenement
Interest
Nature of interest
Peak Hill, NSW
GL 5884 (Act 1904)
100%
Equity
ML 6036
100%
Equity
ML 6042
100%
Equity
ML 6277
100%
Equity
ML 6310
100%
Equity
ML 6389
100%
Equity
ML 6406
100%
Equity
ML 1351
100%
Equity
ML 1364
100%
Equity
ML 1479
100%
Equity
EL 6319
100%
Equity
Tomingley, NSW
ML 1684
100%
Equity through subsidiary
ML 1821
100%
Equity through subsidiary
ML 1858
100%
Equity through subsidiary
EL 5675
100%
Equity
EL 5942
100%
Equity
EL 6085
100%
Equity
Glen Isla
EL 8676
100%
Equity
EL 8794
100%
Equity
EL 9597
100%
Equity
Rockley, NSW
EL 8194
100%
Equity
EL 8527
100%
Equity
Cudal, NSW
EL 7020
100%
Equity
Northern Molong Porphyry Project, NSW
Bodangora
EL 4022
100%
Equity
Kaiser
EL 6209
100%
Equity (subject to royalty of 2% net smelter return)
Finns Crossing
EL 8261
100%
Equity
Comobella North
EL 8338
100%
Equity
Boda South
EL 8887
100%
Equity
Southern Junee Porphyry Project, NSW
EL 9600
100%
Equity
Armstrongs (near Parkes), NSW
EL 9178
100%
Equity
Mt Conqueror, NSW
EL 9107
100%
Equity
Nullagine, WA
E 46/522-I & 523-I
0%
60% retained interest in diamond potential – FMGN
(FMG Nullagine Pty Ltd)
M 46/515, 522 & 523
0%
60% retained interest in diamond potential – FMGN
(FMG Nullagine Pty Ltd)
Mining Tenements
146 Alkane Resources Annual Report 2024
ADDITIONAL INFORMATION SCHEDULE OF MINING TENEMENTS
147
Alkane Resources Annual Report 2024